Customer’s Awareness on Genuine Versus Counterfeit Electronic Fiscal Device Receipts in Tanzania; A Case of Moshi Municipal

  • Ansgar Sakaya Mzumbe University, P.O BOX 6559, Mbeya +255, Tanzania
Keywords: Customer’s awareness, Genuine EFD Receipt, Counterfeit EFD Receipt, VAT Evasion, Tanzania

Abstract

Insufficient tax revenue collection is considered to be an expense in public expenditure that has been accelerated by poor transaction records realized from electronic device stemming from false transactions recorded and produced by EFD machine and reported to tax authority. The main intention of the paper is to assess customers’ awareness on genuine versus counterfeit EFD (electronic fiscal device) receipts. A survey design was employed to 140 respondents; Purposive, stratified and simple random strategies were used to draw the sample size from the population. Data were collected via structured questionnaire and analyzed descriptively in hand with inferential statistics. The study found that, customers are not aware of genuine and counterfeit receipts. There is a huge laxity of behavior tendency among Tanzanians’ of not asking and reading receipts. The problem of underestimating sales figure by traders is still practiced silently in this case. The following recommendations can be undertaken; TRA should take time to classify Item Tax Rates properly, TRA should list down the features of original receipts, TRA needs to work hard to change Tanzanians’ attitude towards revenue collections via encouraging behavior changes, cognition, affects and change what was believed to be normal on tax collections. Sensitizing customers on keep hold of fiscal receipt and present them to authority in case they see any false facts on their receipts. Having Tax officers exchange program or use customers from other regains on regular base to do ghost shopping. The government can invest by fixing CCTV Cameras to monitor trader’s sales point and Sending a regular reminding SMS to every citizen possessing a mobile phone about asking for and reading receipt as well as reporting any misconduct.

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Published
2020-01-24
Section
Articles