Attitudes towards tax practices of small scale public transporters(matatu): Case Study of Nairobi
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Date
2013-10-11
Authors
Nyakweba, F.O
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Abstract
Tax. by its historic nature is viewed as a necessarv burden by the taxpayer but as an easv
source of revenue by the tax Collector It is the pre-requisite for sustainable revenue base for
any economy of whatever form and size
In order for the Taxpayers to 'willingly' pay Tax. there must be a correspondence between
the level/magnitude of Taxation and the micro and macro wellbeing of the Taxpayer. This
study undertook to isolate the attitudinal factors that impact on the efficiency and
acceptability of Taxation practice as it obtains in Kenya but specifically for the small scale
(Juakali) Transport sub - sector. Specifically this study set out to achieve the following
Objectives
• Establish the attitudinal factors that impact on the Matatu Industry Employer and
Employee Taxation Practices.
• Determine the reasons why the suppliers of the Matatu sub -sector services do not comply
with tax requirements.
• Document Policy Implications from the Studv results Vis - a - Vis Tax collection
Performance in the sub - sector.
The population of study was stratified into two categories: Employer and Employee. Data
collection units were selected using systematic random sampling. Out of the possible 3200
Matatus, 105 was selected for study purposes. Various factors impacting on tax practices
was identified from the respondents. analysed using descriptive and non - parametric
methods. From the study findings, those factors that would positively impact of tax
collection performance and practices were discussed. To enhance positive influence on
Taxation efficiency, a number of variables which include: employee/employer level of
education, Age of Employer, Incentive Provision, Service Provision, Terms and Conditions
of Employment, Mode and Period of Payment were found to be critical. Apart from these,
Regular Awareness Campaign was found necessarv for sustainable Tax Collection process
where the Taxed and the Taxing acquire and provide relevant information on the
requirements of the Law as it pertains to Taxation.
Chapter 5 of this report highlights a number of concluding remarks and ansmg
recommendations, Various Policy Issues, which include infrastructural improvements,
supplier driven Taxation process among others, were also derived.
Description
HE 197.K4N9