The Challenges Faced by Taxpayer on Using Electronic Fiscal Devices:A Case Study of Kigoma Region

Abstract

This study was carried out to assess the challenges faced by taxpayers in using EFDs in Tanzania. The study used descriptive case study design while sampling technique used was simple random sampling technique. The technique led to selection of 96 respondents. Data collection methods used in the study were questionnaire method and documentary review. Descriptive statistics and inferential statistics were used in analyzing data in the study. Firstly, the findings show that individual-related challenges, including low level of education and lack of experience in using EFD machines, negatively affect the usage of EFDs among taxpayers. Secondly, are the findings regarding EFDs related challenges like high price of the devices, lack of availability, the difficulty of use and network problems) have a negative effect on the usage of EFDs among taxpayers.  Further findings revealed that business location and size of business-related challenges have a negative effect on the usage of EFDs among taxpayers. It is recommended that there is a need for reviewing prices of electronic fiscal devices, there is a need for the Tanzania Revenue Authority to establish education programs to taxpayers on using EFDs, and there is a need for providing education to taxpayers on using EFDs.