“Factors influencing the use of EFDs on tax collection in Tanzania;

Abstract

The aim of this study was to assess the factors influencing the use of Electronic Fiscal Devices (EFDs) machine in Tanzania. Specifically, to investigate business firm’s specific factors influencing the use of EFDs by business owners, to examine EFDs related factors influencing its use in the business and to examine the influence of demographic factors on the use of EFDs. The study used cross section primary data collected from the 150 businessmen who are EFDs users and operating in Arusha in the mentioned five wards (Kati, Sanawari, Kaloleni, Themi and Sekei) by using survey method. The study used diffusion of innovation (DOI) theory and unified theory of acceptance and use of technology (UTAUT) theory. Both descriptive statistics (mean, standard deviation, tables and graphs) and simple ordinary least square multiple linear regression model on top of diagnostic test were used in realization of end results. The study found that, education level of business owner, perceived usefulness, perceived cost and perceived risk & time loss were statistically significant. The study found that, one (1) unit or (100%) increase in education level of business owner (e.g from secondary level to diploma level) will increase the usage of EFDs by 0.2 or (20%). One (1) unit or 100 % increase on perceived usefulness through seminars, training, workshops, and meetings between TRA and EFDs users will increase 0.4 unit or 40% on usage of EFDs among business man in their daily transactions; 1 unit or (100%) increase in perceived cost by business owner in using EFDs will result to decrease by (0.4) or unit 40% usage of EFDs in their daily transactions and 1 unit increase in perceived risk & time loss lead to decrease on usage of EFDs machine in daily transactions by (0.3)0.3089 unit. While variables like age of business (experience), gender and perceived skills appeared to be insignificant. This paper shows new insights for policy makers and responsible authority (TRA) to increase training, seminar and workshop about the importance of using new technology (EFDs) to all EFDs user so to increase perceived usefulness of EFDs. Also, study recommend introduction of subside policy of price of buying EFDs machine (if possible, should be provided free to user), the EFDs input (paper/ink) also needed to be subsided or provided free by authority