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Quality of Government Services and the Civic Duty to Pay Taxes in the Czech and Slovak Republics, and other Transition Countries

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  • Jan Hanousek
  • Filip Palda

Abstract

This paper analyses a 2002 survey of the Czech and Slovak Republics, and more limited surveys of Hungary and Poland to conclude that tax evasion is lowest among those who believe that they are getting good quality government services for the taxes they pay. A 20% increase in perceived quality of government services could lead to a 13% drop in the frequency of tax evasion. The present analysis is the first of this sort to indicate that quality of government services influences the willingness to pay taxes. Governments in transition countries who suffer from weak tax collection apparatus may wish to transmit clear information on the quality of their services in order to cut down on evasion. Dieses Papier analysiert eine im Jahr 2002 in der tschechischen und der slowakischen Republik durchgeführte Umfrage sowie eingeschränktere Umfragen aus Ungarn und Polen und kommt zum Schluss, dass Steuerhinterziehung unter denjenigen Personen am geringsten ist, die glauben, dass sie für die Steuern, die sie bezahlen, staatliche Dienstleistungen hoher Qualität bekommen. Eine Zunahme der wahrgenommenen Qualität von staatlichen Dienstleistungen von 20% könnte zu einer Reduzierung der Häufigkeit von Steuerhinterziehung um 13% führen. Die vorliegende Analyse ist die erste dieser Art, die zeigt, dass die Qualität von staatlichen Dienstleistungen die Bereitschaft, Steuern zu zahlen, beeinflusst. Regierungen von Transformationsländern, die über einen schwachen Apparat zur Steuereintreibung verfügen, könnten davon profitieren, klare Information über die Qualität der staatlichen Dienstleistungen zu veröffentlichen, um die Steuervermeidung zu reduzieren. Ce papier analyse un sondage dans les Républiques Tchèque et Slovaque ainsi qu'un sondage plus limité en Hongrie et en Pologne et conclut que la fraude fiscale est la plus basse parmis ceux qui sont persuadés de recevoir des prestations gouvernementales de qualité pour les impôts qu'ils paient. Une augmentation de 20% de la qualité perçue des services du gouvernement pourrait mener à une baisse de 13 % de la fréquence de la fraude fiscale. Cette analyse est la première de son genre à démontrer une influence si vaste de la qualité des services gouvernementaux sur la complaisance fiscale. Les gouvernements des pays en transition qui souffrent d'un appareil défectif de collection d'impôts gagneraient à transmettre une information claire sur la qualité de leurs services afin de réduire l'évasion fiscale.

Suggested Citation

  • Jan Hanousek & Filip Palda, 2004. "Quality of Government Services and the Civic Duty to Pay Taxes in the Czech and Slovak Republics, and other Transition Countries," Kyklos, Wiley Blackwell, vol. 57(2), pages 237-252, May.
    • Handle: RePEc:bla:kyklos:v:57:y:2004:i:2:p:237-252
    DOI: 10.1111/j.0023-5962.2004.00252.x
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    References listed on IDEAS

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    1. Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-1093, Nov.-Dec..
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    More about this item

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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