Factors Influencing Voluntary Tax Compliance in Zanzibar.

Abstract

The purpose of the study was to examine how the factors affecting voluntary tax compliance in Zanzibar can be improved. The study was guided by the following research questions: What are the factors that influence voluntary tax compliance in Zanzibar? What are the possible measures that can be employed to enhance voluntary tax compliance in Zanzibar? What lesson can Zanzibar take from other jurisdictions as far as voluntary tax compliance is concerned? This study employed a cross-sectional research design so as to explore insights into the different issues as they exist in Zanzibar regarding voluntary tax compliance. The design included the exploration and investigation of the factors that influence compliance with tax payments. Because the study was quantitative in nature, the approach inferred the characteristics of the population from the sample characteristics, and general information about the findings was provided based on the sample investigated. The study used a non-probabilistic sampling technique, more specifically, random sampling, which was chosen since the researcher concentrated on Zanzibar's taxpayers and tax officials, with knowledge of factors that may be used to improve voluntary compliance. The study sample was selected from Zanzibar taxpayers and some ZRB officials, and consisted of 200 respondents. The study used mixed research methods to test the hypotheses and meet the stated objectives. Data was collected through a survey questionnaire, interviews, and the review of documents. The study's findings revealed that the majority of customers complain that the tax rate is high; that the majority of customers are not registered with ZRB; that both registered and unregistered clients have a low awareness of tax laws; that there is a weak block system administration in Zanzibar; and that the integrity and professionalism of ZRB staff have a significant impact on client compliance.