This paper aims at presenting the development of an enhanced Information and Communication Technology tax collection system that in some countries is referred to as Electronic Cash Register while in Tanzania is popularly known as the Electronic Fiscal Device Machine (EFD Machines). In Tanzania, the system was nurtured in 2010 to address the issue of tax evasion and improving revenue collection. Since then it has been used by business entities to print fiscal receipt/invoice and transmit accounting information to Tanzania Revenue Authority (TRA) online system where the revenues raised from the tax were much increased. Regardless of the increase in revenues collection, still, EFD machines and its management system face several challenges concerning tax evasion which are frequently reported by government authorities. The major drawbacks observed from the current system by this study are; under-declaration of sales value, avoid EFD machine usage, the use of fake EFD system, division of business and conducting business in unknown areas without being detected by the EFD system. Therefore this paper presents the development of an improved EFD system that addresses the stipulated drawbacks with pharmaceutical business picked as a case study. The current EFD system weaknesses were fixed by embedding stock tracking and commodity cap-pricing features in the developed system. While developing the system, this study assumed evolutionary prototyping as a system development methodology to develop both EFD machine application software and EFD Management System. The major advances of the new system are its ability to detect; under-priced transactions, avoidance of EFD machine use, and use of fake EFD machines. Thus, stock tracking and cap-pricing capabilities incorporated in the developed system will enable TRA to detect tax evaders and therefore improve revenue collection across the country.