Effect of Taxpayer Sensitization on Excise Duty Compliance Among Manufacturing Firms in Embakasi West Nairobi County, Kenya
DOI:
https://doi.org/10.70619/vol4iss7pp21-30Keywords:
Manufacturing Firms Taxpayer Sensitization, and Excise Duty ComplianceAbstract
Purpose: Although the implementation of the excise tax has the potential to enhance revenue collection, its contribution to the GDP has remained negligible in comparison to other forms of taxation. Consistently, the total amount of the excise tax collected has been below the set targets. The general objective was to determine the effect of taxpayer sensitization on excise duty compliance among manufacturing firms in Embakasi west Nairobi County, Kenya. The study was supported by the Theory of Planned Behaviour.
Methodology: The study adopted explanatory research design and target a population was 416 manufacturing firms in Embakasi West Nairobi. A sample size of 203 was drawn from this population and a response of 173which thus 85% response rate. Primary data collection was employed using closed structured questionnaires based on the study's objectives. The data was analyzed using descriptive, inferential statistics and multiple linear regression analysis.
Results: The study showed that taxpayer sensitization positively affects excise duty compliance β=0.270 p-value=0.001<0.05.
Conclusion: The government should implement nationwide educational campaigns to inform taxpayers about their excise duty obligations
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