The Perceptions of Taxpayers on the Adoption of Electronic Fiscal Devices (EFDs) in Revenue Collection in Tanzania: The Case of Dodoma

Most of developing countries rely on fiscal instruments in running their government’s operations; main source of public revenue in these countries is taxes. This study evaluated the taxpayer’s perceptions on the use of Electronic Fiscal Devices (EFDs) by analyzing the benefits of using EFDs in revenue collection; the perceptions of taxpayers towards the use of EFDs and challenges towards the use of the EFDs in revenue collection. The study adopted the survey research design and the sample size of 75 taxpayers was used. The findings show that majority of taxpayers’ demonstrated advantages of using EFDs machine in revenue collection. The study findings reveals that EFDs has reduced the time it takes to prepare sales report, secure tax information for auditing purpose and transaction; and ensure tax rate to be paid by the taxpayers. The challenges faced by EFDs users includes high prices of EFD machines, faint fiscal tax invoices, EFD’s network problem, lack of taxpayer’s education EFDs applications and few suppliers of EFDs machines. The study recommend Tanzania Revenue Authority (TRA) to conduct trainings and workshops with taxpayers on EFDs application; to provide incentives to encourage taxpayers’ adoption of EFDs; to ensure sensitization, education and training programs are promoted to taxpayers’ awareness in on EFDs system in friendly manner. Finally, the government through fiscal laws should make sure that all qualified taxpayers are enrolled on the use of EFD machine.