IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i4p618-638.html
   My bibliography  Save this article

The Effect of Taxpayer Awareness on Tax Compliance in Rwanda (Case Study: Kigali Sector 2022)

Author

Listed:
  • Eliezer NIYORUGIRA

    (Faculty of Economics Social Sciences and Management Department of Enterprise Management Masters of Sciences in Taxation)

Abstract

The study titled “The Effect of Taxpayer Education on Tax Compliance in Rwanda (Case Study: Kigali Sector 2022)†aims to investigate the influence of taxpayer education, media impact, and tax system fairness on tax compliance. The specific objectives include ascertaining the effect of tax education on tax-related compliance, examining the impact of the media on tax compliance, and assessing the influence of tax system fairness on tax compliance using SPSS Version 22. The findings of the study reveal important insights. The coefficient analysis indicates that a one-unit change in variable (Tax education), representing taxpayer education, leads to a significant increase in the log-odds of tax compliance by 0.694. Similarly, variable (media), denoting media impact, shows a 0.313 rise in the log-odds of tax compliance for a one-unit change, and this effect remains statistically significant. Variable (4), representing tax system fairness, demonstrates a 0.473 increase in the log-odds of tax compliance for every one-unit change, and this relationship is statistically significant. Furthermore, variable (8), related to tax information from other taxpayers, exhibits a 0.246 increase in the log-odds of tax compliance for a one-unit change, proving statistically significant. Variable (9), representing information from the radio, although not statistically significant, still indicates an important impact with a p-value of 0. 044.In summary, the study provides empirical evidence supporting the positive impact of taxpayer education, media influence, and tax system fairness on tax compliance in the context of Kigali Sector, Rwanda. These findings contribute to the existing literature on tax compliance behavior and offer valuable insights for policymakers and tax authorities.

Suggested Citation

  • Eliezer NIYORUGIRA, 2024. "The Effect of Taxpayer Awareness on Tax Compliance in Rwanda (Case Study: Kigali Sector 2022)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(4), pages 618-638, April.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:4:p:618-638
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-4/618-638.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/the-effect-of-taxpayer-awareness-on-tax-compliance-in-rwanda-case-study-kigali-sector-2022/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Miloš Fišar & Tommaso Reggiani & Fabio Sabatini & Jiří Špalek, 2020. "Media Bias and Tax Compliance: Experimental Evidence," MUNI ECON Working Papers 2020-01, Masaryk University, revised Feb 2023.
    2. Eriksen, Knut & Fallan, Lars, 1996. "Tax knowledge and attitudes towards taxation; A report on a quasi-experiment," Journal of Economic Psychology, Elsevier, vol. 17(3), pages 387-402, June.
    3. Mr. Vadim Khramov & Mr. John Ridings Lee, 2013. "The Economic Performance Index (EPI): an Intuitive Indicator for Assessing a Country's Economic Performance Dynamics in an Historical Perspective," IMF Working Papers 2013/214, International Monetary Fund.
    4. Joel Slemrod, 2018. "Is This Tax Reform, or Just Confusion?," Journal of Economic Perspectives, American Economic Association, vol. 32(4), pages 73-96, Fall.
    5. McKenzie, David & Seynabou Sakho, Yaye, 2010. "Does it pay firms to register for taxes? The impact of formality on firm profitability," Journal of Development Economics, Elsevier, vol. 91(1), pages 15-24, January.
    6. Keith Walsh, 2012. "Understanding Taxpayer Behaviour – New Opportunities for Tax Administration," The Economic and Social Review, Economic and Social Studies, vol. 43(3), pages 451-475.
    7. James, Simon & Alley, Clinton, 2002. "Tax compliance, self-assessment and tax administration," MPRA Paper 26906, University Library of Munich, Germany.
    8. Koumpias, Antonios M. & Martinez-Vazquez, Jorge, 2019. "The impact of media campaigns on tax filing: quasi-experimental evidence from Pakistan," Journal of Asian Economics, Elsevier, vol. 63(C), pages 33-43.
    9. Frey, Bruno S., 2003. "Deterrence and tax morale in the European Union," European Review, Cambridge University Press, vol. 11(3), pages 385-406, July.
    10. Alhassan Yusif Trawule & Samuel Gameli Gadzo & Holy Kwabla Kportorgbi & Richmond Sam-Quarm, 2022. "Tax education and fear-appealing messages: A grease or sand in the wheels of tax compliance?," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2049436-204, December.
    11. Kasper, Matthias & Kogler, Christoph & Kirchler, Erich, 2015. "Tax policy and the news: An empirical analysis of taxpayers’ perceptions of tax-related media coverage and its impact on tax compliance," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 54(C), pages 58-63.
    12. Gitaru, Kelvin, 2017. "The Effect of Taxpayer Education on Tax Compliance in Kenya.( a case study of SME's in Nairobi Central Business District)," MPRA Paper 80344, University Library of Munich, Germany.
    13. Donna Bobek & Amy Hageman & Charles Kelliher, 2013. "Analyzing the Role of Social Norms in Tax Compliance Behavior," Journal of Business Ethics, Springer, vol. 115(3), pages 451-468, July.
    14. Park, Chang-Gyun & Hyun, Jin Kwon, 2003. "Examining the determinants of tax compliance by experimental data: a case of Korea," Journal of Policy Modeling, Elsevier, vol. 25(8), pages 673-684, November.
    15. Imeda Tsindeliani & Sebastian Kot & Evgeniya Vasilyeva & Levon Narinyan, 2019. "Tax System of the Russian Federation: Current State and Steps towards Financial Sustainability," Sustainability, MDPI, vol. 11(24), pages 1-18, December.
    16. Michael Wasylenko, 1997. "Taxation and economic development: the state of the economic literature," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 37-52.
    17. Ojede, Andrew & Yamarik, Steven, 2012. "Tax policy and state economic growth: The long-run and short-run of it," Economics Letters, Elsevier, vol. 116(2), pages 161-165.
    18. Christopher L. Gilbert, 2008. "How to Understand High Food Prices," Department of Economics Working Papers 0823, Department of Economics, University of Trento, Italia.
    19. repec:idq:ictduk:13663 is not listed on IDEAS
    20. Anuradha Joshi & Wilson Prichard & Christopher Heady, 2014. "Taxing the Informal Economy: The Current State of Knowledge and Agendas for Future Research," Journal of Development Studies, Taylor & Francis Journals, vol. 50(10), pages 1325-1347, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ahmad Farhan Alshira’h & Moh’d Alsqour & Abdalwali Lutfi & Adi Alsyouf & Malek Alshirah, 2020. "A Socio-Economic Model of Sales Tax Compliance," Economies, MDPI, vol. 8(4), pages 1-15, October.
    2. Kirchler, Erich & Hoelzl, Erik & Wahl, Ingrid, 2008. "Enforced versus voluntary tax compliance: The "slippery slope" framework," Journal of Economic Psychology, Elsevier, vol. 29(2), pages 210-225, April.
    3. Agumas Alamirew Mebratu, 2024. "Theoretical foundations of voluntary tax compliance: evidence from a developing country," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-8, December.
    4. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    5. Katharina Gangl & Erich Kirchler & Christian Lorenz & Benno Torgler, 2015. "Wealthy Tax Non-Filers in a Developing Nation: The Roles of Taxpayer Knowledge, Perceived Corruption and Service Orientation in Pakistan," CREMA Working Paper Series 2015-08, Center for Research in Economics, Management and the Arts (CREMA).
    6. Godwin Dube & Daniela Casale, 2019. "Informal sector taxes and equity: Evidence from presumptive taxation in Zimbabwe," Development Policy Review, Overseas Development Institute, vol. 37(1), pages 47-66, January.
    7. Mukherjee, Sacchidananda & Rao, R. Kavita, 2017. "Determinants of Registration of Unincorporated Enterprises under State Value Added Tax Act in India," MPRA Paper 81236, University Library of Munich, Germany.
    8. Dan Rickman & Hongbo Wang, 2020. "U.S. State And Local Fiscal Policy And Economic Activity: Do We Know More Now?," Journal of Economic Surveys, Wiley Blackwell, vol. 34(2), pages 424-465, April.
    9. Cyan, Musharraf R. & Koumpias, Antonios M. & Martinez-Vazquez, Jorge, 2017. "The effects of mass media campaigns on individual attitudes towards tax compliance; quasi-experimental evidence from survey data in Pakistan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 70(C), pages 10-22.
    10. James Alm & Antoine Malézieux, 2021. "40 years of tax evasion games: a meta-analysis," Experimental Economics, Springer;Economic Science Association, vol. 24(3), pages 699-750, September.
    11. Mardhiah Mardhiah & Riyana Miranti & Robert Tanton, 2019. "The Slippery Slope Framework: Extending the Analysis by Investigating Factors Affecting Trust and Power," CESifo Working Paper Series 7494, CESifo.
    12. Călin Vâlsan & Elena Druică & Rodica Ianole-Călin, 2020. "State Capacity and Tolerance towards Tax Evasion: First Evidence from Romania," Administrative Sciences, MDPI, vol. 10(2), pages 1-18, June.
    13. James Alm & Lilith Burgstaller & Arrita Domi & Amanda März & Matthias Kasper, 2023. "Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance," Economies, MDPI, vol. 11(9), pages 1-22, September.
    14. Paleka Hana & Karanović Goran & Štambuk Ana, 2023. "The Direct and Moderating Effect of Sociodemographic Variables on Tax Compliance Behaviour," South East European Journal of Economics and Business, Sciendo, vol. 18(2), pages 34-48, December.
    15. Rajat Deb & Tapash Paul & Jaharlal Debbarma & Kiran Sankar Chakraborty, 2020. "Breaking the Stigma of Health Insurance," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 45(1), pages 54-84, February.
    16. Nivakan Sritharan & Sahari Salawati, 2019. "Examining the Moderating Effect of Tax Knowledge on the Relationship between Individual Factors and Income Tax Compliance Behaviour in Malaysia," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 9(3), pages 160-172, July.
    17. Shivani Badola & Sacchidananda Mukherjee, 2021. "ICT Adoption and VAT Registration among Unincorporated Enterprises in India: Analysis of Unit-Level Data," Review of Development and Change, , vol. 26(2), pages 153-178, December.
    18. Khuc Dinh Nam & Nguyen Thi Binh Minh, 2021. "Determinants affecting tax compliance: A case of business households in Ho Chi Minh City, Vietnam," HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE - ECONOMICS AND BUSINESS ADMINISTRATION, HO CHI MINH CITY OPEN UNIVERSITY JOURNAL OF SCIENCE, HO CHI MINH CITY OPEN UNIVERSITY, vol. 11(1), pages 136-152.
    19. Iswahyudi, Heru, 2018. "Economic Consequences of Tax Non-Compliance: Evidence From Indonesia," MPRA Paper 122337, University Library of Munich, Germany.
    20. Ibn e Hassan & Ahmed Naeem & Sidra Gulzar, 2021. "Voluntary tax compliance behavior of individual taxpayers in Pakistan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-23, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:8:y:2024:i:4:p:618-638. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.