Effect of Main Stream Media Education on Tax Compliance among Motor Vehicles Spares Traders in Suburb Area of Nakuru Town, Kenya

Abstract

A major challenge facing both developed and developing countries in the world is non- compliance with current tax laws and obligations. There are several reasons why tax payers do not comply with tax laws, including poor education, complex tax laws, low risk of being caught and a culture of corruption. In Kenya, the authority mandated with tax revenue collection is faced with the challenge of tax compliance among the tax payers. What this one means therefore is that Kenya Revenue Authority does not meet its tax collection targets. Due to tax revenue collected not being enough to finance government development and recurrent expenditure, the government is forced to turn to both domestic and foreign debts. The purpose of this study was to determine the effect of main stream media education on tax compliance among motor vehicles spares traders in Suburb area of Nakuru town, Kenya. This study employed an explanatory research design. This study target population was 300 motor vehicles spare traders operating in the suburb area of Nakuru town. The sample size of the study was 150-motor vehicle spare traders operating in the Nakuru town suburb area. The study found that main stream media taxpayer education is significant in influencing taxpayers’ decisions to comply to taxation systems. The study has concluded that taxpayers’ education through main stream media enlightens the motor vehicles spare traders on the need to pay taxes. In addition, the education programmes impact positively on the ability and willingness of the tax payers to file their returns. This type of education changes the attitude of the tax payers towards paying their obligatory taxes to the tax authorities and thus, leads to increased tax revenue collection. The business traders need to acknowledge the information updated on the social media platforms, newspapers as well as the ones advertised on national televisions. The study also recommends introduction of tax education to the Kenya Education curriculum both for primary and secondary education to better prepare learners who are future tax payers to the importance of tax compliance at an early age.