Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region

Asya Mbarak Tahir; Salama Yusuf; Abdalla Ussi Hamad

doi:doi:10.11648/j.ijebo.20221004.12

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Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region

Asya Mbarak Tahir, Salama Yusuf, Abdalla Ussi Hamad

Published in International Journal of Economic Behavior and Organization (Volume 10, Issue 4)

Received: 18 October 2022 Accepted: 7 November 2022 Published: 22 November 2022

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Abstract

In Zanzibar, tax compliance has been encouraging many years back. Several strategies are established and implemented in the islands purposely for the tax payer to comply with tax regulations. Therefore, the main concern of this study was to examine the economic factors affecting tax compliance among tax payers in Zanzibar: a case of SME’s in urban west region. The researcher has mainly employed quantitative research approach with appropriate method of analysis for this study. A simple random sampling techniques was used to select a sample size for this study which consists of 336 respondents and survey questionnaire was used as data collection instrument. To achieve a reliable study a regression analysis was used to analyses the collected data from relevant respondents. The study has revealed that economic factors; government services and burden of taxation seem to have stronger implication tax compliance in Zanzibar while detection and punishment does not show a significant impact on tax compliance. The study concluded that economic factors have significance influence on tax compliance. Finally, the study recommended that TRA and ZRB should use effective measures to mobilize and motivate small tax payers to register online for turnover tax, value added tax among other taxes in order to increase tax compliance.

Published in	International Journal of Economic Behavior and Organization (Volume 10, Issue 4)
DOI	10.11648/j.ijebo.20221004.12
Page(s)	100-105
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Government Services, Burden of Taxation, Detection and Punishment, Tax Compliance

References

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Asya Mbarak Tahir, Salama Yusuf, Abdalla Ussi Hamad. (2022). Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region. International Journal of Economic Behavior and Organization, 10(4), 100-105. https://doi.org/10.11648/j.ijebo.20221004.12

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ACS Style

Asya Mbarak Tahir; Salama Yusuf; Abdalla Ussi Hamad. Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region. Int. J. Econ. Behav. Organ. 2022, 10(4), 100-105. doi: 10.11648/j.ijebo.20221004.12

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AMA Style

Asya Mbarak Tahir, Salama Yusuf, Abdalla Ussi Hamad. Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region. Int J Econ Behav Organ. 2022;10(4):100-105. doi: 10.11648/j.ijebo.20221004.12

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@article{10.11648/j.ijebo.20221004.12,
  author = {Asya Mbarak Tahir and Salama Yusuf and Abdalla Ussi Hamad},
  title = {Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {10},
  number = {4},
  pages = {100-105},
  doi = {10.11648/j.ijebo.20221004.12},
  url = {https://doi.org/10.11648/j.ijebo.20221004.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20221004.12},
  abstract = {In Zanzibar, tax compliance has been encouraging many years back. Several strategies are established and implemented in the islands purposely for the tax payer to comply with tax regulations. Therefore, the main concern of this study was to examine the economic factors affecting tax compliance among tax payers in Zanzibar: a case of SME’s in urban west region. The researcher has mainly employed quantitative research approach with appropriate method of analysis for this study. A simple random sampling techniques was used to select a sample size for this study which consists of 336 respondents and survey questionnaire was used as data collection instrument. To achieve a reliable study a regression analysis was used to analyses the collected data from relevant respondents. The study has revealed that economic factors; government services and burden of taxation seem to have stronger implication tax compliance in Zanzibar while detection and punishment does not show a significant impact on tax compliance. The study concluded that economic factors have significance influence on tax compliance. Finally, the study recommended that TRA and ZRB should use effective measures to mobilize and motivate small tax payers to register online for turnover tax, value added tax among other taxes in order to increase tax compliance.},
 year = {2022}
}

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TY  - JOUR
T1  - Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region
AU  - Asya Mbarak Tahir
AU  - Salama Yusuf
AU  - Abdalla Ussi Hamad
Y1  - 2022/11/22
PY  - 2022
N1  - https://doi.org/10.11648/j.ijebo.20221004.12
DO  - 10.11648/j.ijebo.20221004.12
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 100
EP  - 105
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20221004.12
AB  - In Zanzibar, tax compliance has been encouraging many years back. Several strategies are established and implemented in the islands purposely for the tax payer to comply with tax regulations. Therefore, the main concern of this study was to examine the economic factors affecting tax compliance among tax payers in Zanzibar: a case of SME’s in urban west region. The researcher has mainly employed quantitative research approach with appropriate method of analysis for this study. A simple random sampling techniques was used to select a sample size for this study which consists of 336 respondents and survey questionnaire was used as data collection instrument. To achieve a reliable study a regression analysis was used to analyses the collected data from relevant respondents. The study has revealed that economic factors; government services and burden of taxation seem to have stronger implication tax compliance in Zanzibar while detection and punishment does not show a significant impact on tax compliance. The study concluded that economic factors have significance influence on tax compliance. Finally, the study recommended that TRA and ZRB should use effective measures to mobilize and motivate small tax payers to register online for turnover tax, value added tax among other taxes in order to increase tax compliance.
VL  - 10
IS  - 4
ER  -

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Author Information

Asya Mbarak Tahir

Department of Economic, Faculty of Arts and Social Science, Zanzibar University, Zanzibar, Tanzania
Salama Yusuf

Department of Accounting and Finance, Faculty of Business Administration, Zanzibar University, Zanzibar, Tanzania
Abdalla Ussi Hamad

Institute of Islamic Banking and Finance, Zanzibar University, Zanzibar, Tanzania

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Asya Mbarak Tahir, Salama Yusuf, Abdalla Ussi Hamad. (2022). Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region. International Journal of Economic Behavior and Organization, 10(4), 100-105. https://doi.org/10.11648/j.ijebo.20221004.12

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ACS Style

Asya Mbarak Tahir; Salama Yusuf; Abdalla Ussi Hamad. Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region. Int. J. Econ. Behav. Organ. 2022, 10(4), 100-105. doi: 10.11648/j.ijebo.20221004.12

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AMA Style

Asya Mbarak Tahir, Salama Yusuf, Abdalla Ussi Hamad. Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region. Int J Econ Behav Organ. 2022;10(4):100-105. doi: 10.11648/j.ijebo.20221004.12

Copy | Download

@article{10.11648/j.ijebo.20221004.12,
  author = {Asya Mbarak Tahir and Salama Yusuf and Abdalla Ussi Hamad},
  title = {Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {10},
  number = {4},
  pages = {100-105},
  doi = {10.11648/j.ijebo.20221004.12},
  url = {https://doi.org/10.11648/j.ijebo.20221004.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20221004.12},
  abstract = {In Zanzibar, tax compliance has been encouraging many years back. Several strategies are established and implemented in the islands purposely for the tax payer to comply with tax regulations. Therefore, the main concern of this study was to examine the economic factors affecting tax compliance among tax payers in Zanzibar: a case of SME’s in urban west region. The researcher has mainly employed quantitative research approach with appropriate method of analysis for this study. A simple random sampling techniques was used to select a sample size for this study which consists of 336 respondents and survey questionnaire was used as data collection instrument. To achieve a reliable study a regression analysis was used to analyses the collected data from relevant respondents. The study has revealed that economic factors; government services and burden of taxation seem to have stronger implication tax compliance in Zanzibar while detection and punishment does not show a significant impact on tax compliance. The study concluded that economic factors have significance influence on tax compliance. Finally, the study recommended that TRA and ZRB should use effective measures to mobilize and motivate small tax payers to register online for turnover tax, value added tax among other taxes in order to increase tax compliance.},
 year = {2022}
}

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TY  - JOUR
T1  - Impact of Economic Factors on Tax Compliance Among Tax Payers in Zanzibar: A Case of SME’s in Urban West Region
AU  - Asya Mbarak Tahir
AU  - Salama Yusuf
AU  - Abdalla Ussi Hamad
Y1  - 2022/11/22
PY  - 2022
N1  - https://doi.org/10.11648/j.ijebo.20221004.12
DO  - 10.11648/j.ijebo.20221004.12
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 100
EP  - 105
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20221004.12
AB  - In Zanzibar, tax compliance has been encouraging many years back. Several strategies are established and implemented in the islands purposely for the tax payer to comply with tax regulations. Therefore, the main concern of this study was to examine the economic factors affecting tax compliance among tax payers in Zanzibar: a case of SME’s in urban west region. The researcher has mainly employed quantitative research approach with appropriate method of analysis for this study. A simple random sampling techniques was used to select a sample size for this study which consists of 336 respondents and survey questionnaire was used as data collection instrument. To achieve a reliable study a regression analysis was used to analyses the collected data from relevant respondents. The study has revealed that economic factors; government services and burden of taxation seem to have stronger implication tax compliance in Zanzibar while detection and punishment does not show a significant impact on tax compliance. The study concluded that economic factors have significance influence on tax compliance. Finally, the study recommended that TRA and ZRB should use effective measures to mobilize and motivate small tax payers to register online for turnover tax, value added tax among other taxes in order to increase tax compliance.
VL  - 10
IS  - 4
ER  -

Copy | Download