Electronic Fiscal Device (EFD) Utilization among Entrepreneurs in Tanzania: Assessing Knowledge, Attitudes, and Challenges
Abstract
The adoption of Electronic Fiscal Devices (EFDs) has been a critical policy initiative to enhance tax compliance and revenue collection efficiency. However, the effective utilization of EFDs among entrepreneurs in Mkuranga District, Tanzania, remains a challenge. This study examines the role of knowledge, attitudes, and operational challenges in influencing EFD adoption. Using a descriptive survey research design, data were collected from 136 entrepreneurs through structured questionnaires and analyzed using multiple regression analysis. The findings reveal that attitude significantly influences EFD usage (B = 0.360, p = 0.045), whereas knowledge has a weaker, non-significant effect (B = 0.130, p = 0.134). Major barriers to compliance include power outages (M = 4.15, SD = 0.834), network instability (M = 4.04, SD = 0.851), and high maintenance costs (M = 4.03, SD = 0.825). The regression model (R² = 0.440, F = 52.188, p = 0.000) indicates that knowledge and attitude together explain 44% of the variation in EFD usage. These findings underscore the importance of targeted training, improved system reliability, and financial incentives to enhance entrepreneurs' engagement with EFDs. The study recommends strengthening education programs, addressing technical challenges, and fostering trust in tax administration to optimize EFD compliance and tax efficiency.
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