Factors Affecting Electronic Fiscal Devices (EFDs) Use by Shops in Tanzania: A Case study of Dar es Salaam Region

Tanzania, Taxation, Electronic Fiscal Device

Abstract

This study aims at identifying factors affecting the use of electronic fiscal devices (EFDs) in shops in Dar es Salaam city. Data was gathered from both primary and secondary sources. A total of 100 traders were sampled using both purposeful and convenient sampling strategies with data being collected through a questionnaire. As an estimating technique, simple Ordinary Least Square (OLS) was applied. The study found several factors which influenced the use of EFD including the high cost of purchasing EFD machines, inadequacy of education on how to use them, constant breakdown of the EFDs system and inadequacy of taxpayer trust in using EFDs among others. The study concludes that the use of EFDs alone cannot enhance tax compliance. It is suggested that the government should invest more resources and increase taxpayer education and awareness programs to promote the use of EFD.