Effect of System Automation on Excise Duty Compliance among Cigarettes Importers in Kenya
Keywords:
System Automation, Excise Duty Compliance, Cigarettes ImportersAbstract
Excise duty compliance remains low in many economies around the world, with revenue authorities failing to achieve their annual targets. The main objective of this study was to determine the effect of system automation on excise duty compliance among cigarette importers in Kenya. The study was guided by diffusion of innovations theory. The study employed an explanatory research design that involved the use of structured questionnaires in collecting primary data. The target population was 21 cigarette importers in Kenya. Data was collected on a 5-point Likert scale questionnaire. Descriptive statistics were presented in tables and charts. Regression analysis was used to determine the relationship between the study variables. The study found that system automation (β=0.215, P=009) has a positive and significant effect on excise duty tax compliance. The study concluded that system automation contributes significantly to improved excise duty compliance among cigarette importers in Kenya. The study recommends that the management of KRA should come up with measures that will lead to an increment in system automation for registration, filing, and payment of excise duty tax. The findings that system automation has a positive and significant effect on excise duty tax compliance also serve to further the diffusions of innovations theory which explains the passage of a new idea through stages of adoption by different people who participate in or begin using the new idea.
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