Determinants of value added tax performance in Kenya: a case of west of Nairobi district
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Date
2019
Authors
Awuor, Mercy
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
This research sought to find out the determinants of value added tax performance, a case of West of Nairobi District. Kenya Revenue Authority does not collect as much revenue from tax as it should as a result of low compliance. Value Added Taxpayers in particular have the potential of generating a lot of revenue for the government but this is not the case. This has posed a significant problem to the government and the country‟s growth as a whole. Therefore, the main objective of the study was to investigate the determinants of Value Added Tax performance in Kenya, a case of West of Nairobi District. The specific objectives were to determine the effect of cost, tax literacy and automation on VAT performance. This study was guided by 3 theories Economic deterrence theory, the ability to pay theory and theory of planned behavior. The target population was VAT taxpayers within West of Nairobi District. Given a target population of 44,944 registered taxpayers in West of Nairobi District, a sample size of 156 was picked as representative, to be the focus of this study. The study was based on a descriptive research design and simple random sampling technique will be adopted. Questionnaires were administered as data collection tools. The collected data was consequently analyzed using Statistical Package for Social Scientist software (SPSS) and the findings of the research presented using tables, figures and percentages to indicate trends among respondents, while regression analysis was used to analyze the data. Both descriptive statistics and inferential statistics was carried out with the help of the SPSS software. Based on research the study findings indicated that cost, tax literacy and automation signficantly affects VAT performance in west of Nairobi District.It is thus recommended that KRA should continue to pay more attention on cost, tax literacy and automation on Value Added Tax performance. This can be done by enhancing accountability in their systems. The study suggests similar study can be conducted using different practices to influence Value Added Tax performance in other districts.
Description
PROJ 336.271 AWU
Keywords
Automated tax system, Electronic filing, Value Added Tax