The effect of taxpayer education on value added tax compliance among retailers in Kamukunji sub-county, Nairobi.
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Date
2019
Authors
Mukanda, Joseph Evans
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Notably, tax plays an important role in the growth and development of a nation. The government uses revenue collected from taxes to develop the economy and provide public services to citizens. Sadly, developing countries find it challenging to encourage their citizens to honor their tax obligations. This implies that the amount of revenue collected by governments is less than what should be collected. Kenya has emerged as one of the nations that are grappling with low tax compliance levels among taxpayers. Even though retailers (small scale and large scale) employ a significant majority of Kenya’s workforce, they exhibit the lowest levels of tax compliance. As a significant sector, the failure of retailers to honor their tax obligations denies the government much revenue that could have been used to improve public services and develop critical infrastructure. However, educating taxpayers on tax laws and processes could improve tax compliance levels. Therefore, this report investigated the effect of taxpayer education on value-added tax compliance among retailers in Kamukunji, Nairobi. The study narrowed on the effect of electronic and print media, as well as taxpayers’ literacy levels on tax compliance amidst retailers in the target location. The study applied descriptive statistics to analyze the data collected using questionnaires. This research was based on the economic deterrence theory and the theory of planned behavior. Even though the study targeted 3500 retail traders in Kamukunji, questionnaires were only distributed to 290 retailers, primarily due to time constraints. The study used SPSS version 20 to analyze the findings and develop the multiple regression model. From the study findings, it was evident that 97.2% of changes in the dependent variable were attributed to changes in the independent variables. It is thus apparent that taxpayer education is positively correlated to tax compliance among retailers in Kamukunji, Nairobi.
Description
PROJ 343.73 MUK
Keywords
Tax Compliance, Electronic Media, Value Added Tax, Literacy Level