Perceptions And Adoption Of Using Electronic Fiscal Devices Among Entrepreneurs: A Case Of Dodoma Municipality

ABSTRACT

The government and the general public, is highly concerned on the question of collection of taxes as it forms the base for the government muscles to spend. On that consideration, the government has been using several strategies to ensure that people pay their tax dues and that, tax collectors remit the same to the authority. One of such strategies is the usage of EFDs (electronic fiscal devices) by traders as directed by the government. This study was put in place in order to investigate on the perceptions and adoption of using EFDs among entrepreneurs by taking a case of Dodoma Municipality. Specifically, It was designed to fulfil three objectives, namely; to examine the perceptions of using EFD among the entrepreneurs, to assess the adoption of EFD usage among entrepreneurs and to identify challenges faced by small entrepreneurs in the usage of EFD. The study was approached by using a descriptive cross-sectional survey design and was based at Dodoma Municipality. Data were collected from traders and TRA officials by the usage of questionnaires and interviews respectively. Data were then analysed by using percentages, frequencies, tables, figures and strong explanation building. It was found out that, majority of entrepreneurs had positive perceptions towards usage of EFD due to the machines efficiency in tax collection, bringing fairness to entrepreneurs in terms paying taxes and simplicity. The only negative perceptions users had on EFDs were their high price and dependency on electricity. The study also documented a host of challenges which are the cause for non-adoption, more importantly are; dependency of EFDs on electricity, low education of traders, shortage of EFDs technicians to service the machines and difficulty in listing the purchased items. It was recommended that, TRA takes a lead to educate the public on the usage and benefits, of using EFDs. It was also recommended to reduce price.