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Taxpayer Satisfaction Transformation: A Text Mining Analysis of Service Delivery at Jakarta’s Tax Offices

Author

Listed:
  • Abdurrahman Rahim Thaha
  • Rita Purnamasari
  • Aji Fajar Suryo Antoro

Abstract

Taxpayer satisfaction is critical to driving voluntary compliance and the overall effectiveness of the tax system. In Jakarta, service quality at the Tax Office (KPP) significantly affects taxpayer perceptions and satisfaction. Positive interactions with KPP foster trust in government institutions and increase voluntary tax compliance. This study uses advanced data analysis techniques to assess taxpayer satisfaction by analyzing more than 8,000 Google reviews of tax offices in Jakarta. Sentiment analysis categorizes reviews into positive, neutral and negative sentiments. Topic modeling with Latent Dirichlet Allocation (LDA) identified key themes, such as service efficiency, administrative procedures, and staff interaction. K-means clustering grouped the tax offices based on service perceptions. This analysis shows significant variation in taxpayer satisfaction across different tax offices. Some tax offices excel in terms of service efficiency and clarity, receiving mostly positive reviews, while others struggle with suboptimal service delivery and lengthy processes, resulting in negative feedback. Topic modeling highlighted key areas of concern for taxpayers, including service speed, administrative procedures, and staff interaction. Clustering analysis identified distinct groups of tax offices, each with unique challenges and strengths in service delivery. The findings suggest targeted interventions to address specific issues in underperforming tax offices. By aligning service improvements with issues identified by taxpayers, tax authorities can significantly improve satisfaction and compliance. This approach allows for strategies to be tailored to the specific needs of each cluster. This study contributes to public sector reform by showing how taxpayer feedback can be systematically analyzed to inform service improvements. The methodology and findings offer a replicable model for other regions looking to use data-driven insights to improve government services. Improving taxpayer satisfaction is critical to fostering greater public trust and achieving higher tax compliance.

Suggested Citation

  • Abdurrahman Rahim Thaha & Rita Purnamasari & Aji Fajar Suryo Antoro, 2024. "Taxpayer Satisfaction Transformation: A Text Mining Analysis of Service Delivery at Jakarta’s Tax Offices," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 10(3), pages 441-458.
  • Handle: RePEc:aiy:jnljtr:v:10:y:2024:i:3:p:441-458
    DOI: https://doi.org/10.15826/jtr.2024.10.3.177
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    More about this item

    Keywords

    public sector reform; sentiment analysis; service delivery; taxpayer satisfaction; topic modeling;
    All these keywords.

    JEL classification:

    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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