Effect of taxpayer education on excise duty compliance among small and medium enterprises in upper eastern region, Kenya.
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Date
2019
Authors
Macharia, Ivan
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Taxation is a major revenue source for governments world over ,therefore tax authorities must continuously put in place measures that ensure maximum revenue collection. Despite measures by KRA, Excise duty compliance has remained low and therefore KRA keeps falling short of its annual targets. The prime goal of this research is to determine the effect of taxpayer education on Excise tax compliance among small and medium entrepreneurs in Upper Eastern, Kenya. The general objective of the study was to determine the effect of taxpayer education on Excise duty compliance among entrepreneurs in Upper Eastern. The specific objectives were to determine the effect of mobile tax clinics, to determine the effect of print and electronic media advertisements and to determine the effect of tax training seminars on excise duty compliance. The study was guided by Optimal Tax Theory and Fiscal Exchange theory. This study adopted a descriptive research design .The target population was all the 23 registered entrepreneurs dealing in excisable goods and services in Upper Eastern. Primary data was used collect data using questionnaires and secondary data was obtained from the KRA offices in Embu. Regression and Correlation analysis was used to determine the significance and relationship of the variables. Both descriptive statistics and inferential statistics was carried out with the help of the SPSS software. The study adopted regression analysis to confirm the effect of taxpayer education on excise duty compliance. Data was presented in the form of frequency distribution tables & charts. The study results showed that indeed; mobile tax clinics, print electronic media adverts and tax training seminar enhances excise duty compliance on entrepreneurs in upper Eastern. Regression analysis was conducted; the findings revealed that Taxpayer education correlate with excise duty compliance. The findings revealed that the p value was 0% which is less than 5% which implies that the relationship between taxpayer education and excise duty compliance was statistically significant. The study recommends that there is need to enhance taxpayer education among entrepreneur in upper Eastern region using tax training seminars , since more tax training seminar enables them understand tax laws and hence comply with them. The study suggested future studies may be conducted on the influence of taxpayer education on excise duty Compliance among entrepreneurs other counties such as Nyeri, Mombasa and Nairobi.
Description
PROJ 343.04 MAC
Keywords
Excise Duty, Mobile tax clinics, Tax compliance, Taxpayer Education