Effect of Socio-Economic Factors on Tax Compliance of Commercial Tricycle Operators in Yobe State, Nigeria
DOI:
https://doi.org/10.5281/zenodo.17746463Keywords:
tax compliance, socio-economic factors, daily due, commercial tricycle operators, infrastructure developmentAbstract
This study investigates the effect of socio-economic factors on tax compliance among commercial tricycle operators in Yobe State, Nigeria. The research was motivated by persistent non-compliance within the informal transport sector despite government efforts to enhance internally generated revenue through the introduction of daily dues. Using a survey research design, data were collected from 385 tricycle operators selected from a population of 22,541 registered with YOROTA. A structured questionnaire measured daily due, fairness in payment, cost of penalty, infrastructure development, and tax compliance using a five-point Likert scale. Cronbach’s Alpha confirmed strong internal consistency across study constructs. Descriptive statistics indicated strong agreement among respondents concerning the relevance of socio-economic factors. Correlation results revealed significant positive relationships between all predictors and tax compliance. Regression analysis further demonstrated that daily due, fairness in payment, cost of penalty, and infrastructure development jointly explained 81.4% of the variation in tax compliance. Daily due exerted the strongest positive influence, followed by fairness, penalty cost, and infrastructure development. These findings align with socio-economic compliance theories emphasizing the role of fairness perceptions, penalty enforcement, and public service delivery in shaping taxpayer behaviour. The study concludes that socio-economic factors are critical determinants of voluntary tax compliance among informal transport operators. It recommends improved taxpayer engagement, transparency in revenue utilization, and restructuring of daily dues to reflect operators' economic realities. Strengthening administrative efficiency and enhancing fairness may substantially boost compliance levels in the informal transportation sector.
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