TITLE:
The Factors Influencing Manufacturers’ Preference and Use of Electronic Tax Stamps (ETS) in Morogoro Region, Tanzania
AUTHORS:
Leah Ezekiel Mnjeja, Alexis Naho, Lazaro Athanas Mwonge
KEYWORDS:
Manufacturers, Factors, Use, Electronic Tax Stamps, Morogoro Region, Tanzania
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.11 No.10,
October
7,
2023
ABSTRACT: Our study assessed the factors influencing the preference and usage of
electronic tax stamps (ETS) among manufacturers in the Morogoro region of
Tanzania, in line with the potential benefits for revenue collection and
combating tax irregularities. Both Economic Deterrence Theory and Allingham and
Sandmo Theory were used to inform our study. To gain comprehensive insights
into manufacturers’ preference for and use of ETS, we employed both descriptive
and explanatory research designs, as they serve distinct purposes and provide
valuable information. Our sample consisted of 100 respondents selected from
five registered manufacturing industries using purposive and random sampling
techniques. We collected primary data through questionnaires and interviews, while secondary data was gathered through
documentary reviews. A logistic regression model was used to explore the
factors influencing manufacturers’ use of ETS. The results revealed significant
positive relationships between penalties, education level (primary, secondary,
and college/university education), expertise, and the usage of ETS. By
contrast, inconvenience, cost of purchasing ETS, and tax rate showed
significant negative relationships. These findings emphasize the importance of
penalties, education, and expertise in promoting compliance and use of ETS,
while factors such as cost and tax rate act as barriers to manufacturers’ preference
for ETS. Based on our study findings, we recommend that policymakers streamline
administrative processes, simplify compliance requirements, and consider tax
reforms to reduce the burden on manufacturers.