Customer’s Awareness on Genuine Versus Counterfeit Electronic Fiscal Device Receipts in Tanzania; A Case of Moshi Municipal (original) (raw)
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2018
The Government of the United Republic of Tanzania introduced EFDs since year 2013 in its second. The second phase includes non VAT registered traders administered under The Tax Administration Act 2015, to replace the Electronic Cash Register. The operations under Electronic Cash Register did not meet the desired expectations, including tax collections, and administration of the system. The newly introduced EFD has been prepared to cater for the inefficacies inherent in the former system of tax collection. The purpose of the study was to assess the perceptions of tax payers on the adoption of Electronic Fiscal Devices in revenue in Arusha municipality. The study focused on analyzing the benefits of adopting EFDs in revenue collection in Arusha Municipality, identifying challenges towards adopting EFDs in revenue collection and suggesting measures to overcome the challenges associated with adopting EFDs in revenue collection in Arusha Municipality. The study adopted both quantitative ...
International Journal of Academic Research in Business and Social Sciences
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.
University of Eastern Africa, Baraton/Malawi Adventist University, 2016
The purpose of this study was to understand the impact of attitude on the use of the EFDs among VAT registered traders in Lilongwe’s area 2, Mitundu, and Kaphiri commercial areas. A sample of 96 EFD registered traders was selected using systematic sampling from the clusters. The data was gathered by use of questionnaires and observation; data was analyzed using descriptive statistics and inferential statistics. It has been determined that, VAT registered traders involved in this study are knowledgeable on the use of the EFDS and that the minority (42.7%) are voluntary users of the EFDs and the majority (57.3%) are not. It has been assessed that customer are keen to sales receipts, because they demand for sales receipts when not issued with one after a transaction. Empirical results reveals that VAT registered traders attitude has a significant influence on the use of the EFDs, (R=0.597, p<0.05). The study also supports the technology acceptance model, that attitude towards the use of a system influence the actual system usage. Based on the research findings the impact of attitude on the use of the EFDs among VAT registered traders, has been understood that if a trader has a positive attitude on the use of the EFDs, chances of the trader to comply by using the EFDs are very high vice versa. In conclusion, the researcher proposed a policy implication; it has been proposed that MRA should offer rewards to honest taxpayers to encourage others to comply, it has also been proposed that MRA should deploy field agents to detect traders evading the use of EFDs. In addition, the Malawi government should create a national day for tax awareness to civic educate the nation on the importance of taxes.
European Journal of Business and Management, 2015
The study sought to assess the effect of implementing Electronic Fiscal Devices in VAT collection in Tanzania. The study analysed the importance of Electronic Fiscal Devices to TRA, taxpayers and other stakeholders with the aim of determining the impact of Compliance Checks using Electronic Fiscal Devices on VAT collection in Tanzania, to establish the effect of Roll Out of Electronic Fiscal Devices on VAT collection in Tanzania and to evaluate the effectiveness of Enforcement of Electronic Fiscal Devices on VAT collection in Tanzania. The study utilized secondary data obtained from 391 traders registered at TRA and utilizing Electronic Fiscal Devices. The study adopted a descriptive research design. Preliminary data analysis was conducted as a pre requisite to running regression analysis. The data collected was computed using STATA SE 12.1 and the output presented in form of tables. To answer the research objectives and hypotheses regression analysis was utilized where variables o...
IMPACT OF ELECTRONIC FISCAL DEVICES TOWARDS REVENUE COLLECTION IN TANZANIA
OLVA ACADEMY, 2022
This study aimed at examining the Impact of Electronic Fiscal Devices Towards Revenue Collection in Tanzania: A Case Tanzania Revenue Authority-Arusha Region. The study found that there exists a statistically significant positive relationship between tax compliance using EFDs and revenue collection and there exist a statistically significant positive relationship between tax information transmission using EFDs and revenue collection. The study also found that there is statistically significant positive relationship between efficiency and effectiveness of EFDs and revenue collection. The study concludes and recommends that the introduction of EFDs machines to taxpayers has been seen as an effective way to solve the problem of non-compliance and raise government revenues. Further studies are recommended especially on willingness of taxpayers to use EFDs, how to combat tax avoidance or evasion through the use of EFDs, Effective use of EFDs, EFDs administration costs versus benefits accrued.
Academy of Entrepreneurship Journal, 2020
This study determined the impact of taxpayer perceptions, in the form of the fear of punishment by the Tanzanian Revenue and Government authorities, on the rate of using Electronic Fiscal Devices (EFDs) among small business owners in Tanzania. As a result, the study sample was refined to include 279 small business owners, who are based in Arusha region. The key objectives of the study were to determine the categorical relationship between demographic characteristics and the fear of punishment, as well as to determine the impact of the fear of punishment on the rate of using EFDs. The study used the quantitative approach in addressing the objectives by employing the chi-square, ANOVA and ordinal regression as analytical techniques. Results of the analysis suggested no significant categorical relationship exists between demographic variables (the age, gender, and level of education) and the fear of punishment. Furthermore, the fear of punishment does not impact the rate of EFD use. The study recommends that the Tanzania Revenue Authority should not use age, gender, and level of education to determine the effectiveness of punishment among small business owners. Furthermore, the Tanzania Revenue Authority should not use intimidations as a method to impact compliance. The study forms part of the Ph.D thesis work of Ms Agnes Malima.
American journal of finance, 2022
This paper examines the challenges facing the implementation of using Electronic Fiscal Device (EFD) in tax collection in Tanzania. Specific objectives were to identify the challenges facing the implementation of the use of EFD machines, to evaluate causes for the challenges facing the implementation of the use of electronic fiscal devices, to assess the difficulties faced by taxpayers in adapting the use of EFD machines. Methodology: The study adopted the survey research design and the sample size of 68 taxpayers (VAT registered and none registered, but both who use the EFD machines) was used. The study was carried out in Dodoma City Council. Data were gathered using interview method in which questionnaire tool was administered. Data collected were organized, coded, and analyzed using by (SPSS) version 20. Data were analyzed by using descriptive statistics through frequencies and percentages as well as multiple linear regression model was also used. Findings: The system to a great extent assisted in sealing loopholes of tax evasion in Tanzania. The system had also assisted in improvement on tax compliance. The study established that the Authority is still experiencing some resistance to change from both internal and external customers. Conclusion: Thus, through major findings of the study; it has been indicated that EFD system had a lot of challenges which hinder the implementation of using the machine though the system enhanced tax collection in business premises in Tanzania. Those challenges include regular break down of power and internet, fairness of tax estimated from tax payers, lack of education on the use of EFDs machines, maintenance of machines and under pricing of tax from traders. Recommendation: The study recommends that stakeholders need more awareness of the system and friendly environment of using EFD machines in which they suggest strongly strategies for improvements of the system.
The customer is king: Evidence on VAT compliance in Tanzania
World Development
Like governments in many other African countries, the Government of Tanzania has been striving to improve the effectiveness of its value added tax (VAT) regime by reducing tax evasion through a combination of measures, including improved tax legislation and more effective administrative processes. A key initiative was the introduction of Electronic Fiscal Devices (EFDs) in 2010. It was expected that the new technology would be beneficial to both the Tanzania Revenue Authority (TRA) and business people by improving VAT compliance and reducing administrative and compliance costs. However, VAT collection has not improved as expected. In this paper, we examine EFD compliance among businesses that have an EFD and identify factors that influence compliance. An innovation in this study is that the research design allowed us to directly observe EFD usage, an important aspect of VAT compliance. Our enumerators waited for customers departing from business premises, and then checked their receipts, interviewed them and interviewed the businesses. This design enabled us to observe each business's actual compliance in issuing EFD receipts, thus circumventing the problem of dishonest reporting, which is common in self-reported survey data. We find that EFD compliance is strongly associated with the customer's perception of detection and penalty risks, and with the business operator's perception of other businesses' compliance behaviour.
International Journal of Information Engineering and Electronic Business, 2019
The Electronic Fiscal Device (EFD) Machines have been operating in Tanzania since the year 2010 for the purpose of helping the Tanzania Revenue Authority (TRA) to increase revenues from tax collection. Regardless of years of its existence, there are still reported cases of tax evasion, and this study was conducted to review the current tax collection system and analyze requirements for the development of Stock Tracking Module (STM) to be embedded in the current tax collection system. This paper earmarked some problems relating to Electronic Fiscal Device Machine Management System (EFDMS) and EFD machine. Data collection was done in Kilimanjaro and Arusha, the two regions of Tanzania that involved tax officers and Information Technology (IT) personnel from TRA and drug traders. Data collection process involved both qualitative and quantitative methods to gather data for the development of the system Stock Tracking Module (STM) such as interview, questionnaire, role-playing and observation. The major findings of the study: The efficiency of the EFDMS is at average, thus, need some improvements. The major problems encountered by TRA are; under declaration of sales by traders, non-usage of EFD machines, usage of fake EFD, overestimate of expenses, division of business and conducting business in unknown areas. The proposed solution will reduce the existing challenges and increase revenue collections, reduce manual work and human resource, and improve accuracy on tax estimation process.
The Perceptions on Usage of Electronic Fiscal Devices among Small Business Owners in Tanzania
IJMRE, 2021
the use of Electronic Fiscal Devices (EFDs) appears to be a current innovation that is broadly promoted for effective revenue collection not only in Tanzania but also in worldwide. This study examined the perceptions on usage of electronic fiscal devices among small business owners in Tanzania. The study adopted cross-sectional survey research design whereby primary and secondary data were used. The population applied on the 152 small business owners (small restaurants owners). The sample size of the study was 110 small restaurants owners. Dodoma City was purposively sampled to be used as a study area of this research and random sampling procedure was used to pick small restaurants owners in Dodoma City. Results revealed that EFDs usage in term of number of years among small restaurants owners was positively and significantly influenced by perceived usefulness of EFDs and perceived ease of use respectively; with P-Value of 0.0439. The study recommends that the government is advised to resolve the dependence challenge of EFDs on electricity, to develop sustained training and taking required measures for the learner restaurants to ensure that they observe rules and regulations mostly on the use of EFDs but not limited to tax compliance only.