IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 10 2024
DOI: 10.56201/jafm.v10.no10.2024.pg144.159

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Service Quality Delivery at State Government Level and Tax Compliance Behavior of Small Business

Ogboriyo Augustine Pereowei, Perewari Ebilaowei (Ph.D)

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Abstract

The study investigated the effect of service quality delivery at the state government level on tax compliance behavior of small business owners in Nigeria. Specifically, the research examines how two key dimensions of service quality—citizen satisfaction with government services and the accessibility of government services—affect the willingness of small business owners to comply with tax regulations. Utilizing a survey design, data were collected from 400 small business owners across Nigeria through a structured questionnaire based on a five-point Likert scale. The study employed both descriptive and inferential statistical methods, including regression analysis, to assess the effect of the independent variables (citizen satisfaction and service accessibility) on the dependent variable (tax compliance behavior). The results indicate a significant positive effect of both dimensions of service quality on tax compliance, with citizen satisfaction exerting a slightly stronger influence. The findings suggest that improving the quality and accessibility of government services could serve as a critical strategy to enhance tax compliance among small businesses, a sector vital to Nigeria’s economic growth. The study concludes that increased professionalism, transparency, and ease of access to government services can lead to higher tax compliance rates. Based on these findings, the study recommends that state governments invest in service delivery improvements, enhance digital access to services, and engage small businesses through awareness campaigns on the importance of tax compliance for national development.

keywords:

Tax compliance, Service quality, Citizen satisfaction

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