Effect of Taxpayer Education on Voluntary Tax Compliance Among Small and Medium Enterprises, Mwanza City, Tanzania
Tax collection is a significant revenue stream for most governments, facilitating the funding of development initiatives. Tax compliance among Small and Medium Enterprises (SMEs) particularly in developing countries has been a challenge and lack of adequate tax education has been identified as one of key factors contributing to low level of tax compliance. In response to that, Tanzania Revenue Authority (TRA) has launched several tax education programs. The primary aim of this study was to investigate the effect of tax education programmes on compliance of tax behaviour among SMEs owners in Mwanza City, Tanzania. The research was conducted under the framework of the Theory of Reasoned Action. The study utilised a sample size of 194 from a population of 1,254 SMEs taxpayers in Mwanza City. The study employed structured questionnaires to gather primary data and the quantitative data were analyzed using descriptive statistics and inferential statistics including Pearson correlation and regression analysis in order to determine the effect of each tax education program tax compliance. Regression analysis indicated that tax education programs conducted through mass media, print media, and social media exhibited a noteworthy and constructive effect on voluntary tax compliance among SMEs taxpayers. The research findings additionally revealed that print media education exhibited the strongest correlation with tax compliance, with social media education and mass media education following suit and lastly social media education. The study recommends that TRA Taxpayer Education Department should provide tax education more frequently in various parts of Mwanza city among both registered and non-registered SMEs taxpayers and the whole of Tanzania to improve voluntary tax compliance. TRA should use mass media education, print media education, and social media in an integrated manner as this approach derives better results than current practice. TRA Taxpayer education department should also customize educational sessions through interactive social media platforms.
Keywords: Voluntary tax compliance, mass media tax education, print media tax education, social media tax education, SMEs, Tanzania
