Influence of tax education on local service tax compliance among district local governments: a case of Wakiso District

Abstract

This study investigated the influence of tax education on local service tax compliance among district local governments with a case of Wakiso district. The study was based on three specific objectives; to examine the effect of Print media Taxpayer Education on local service tax compliance at Wakiso district Local government, to establish the effect of Electronic Taxpayer Education on local service tax compliance at Wakiso district Local government and to assess the effect of Taxpayer Sensitization Programs `on local service tax compliance at Wakiso district Local government. The study employed a descriptive and correlational research design with a quantitative study approach which involved collecting numerical data from 136 respondents. Quantitative Data was analyzed using the statistical package for social science (SPSS Version 27) The results show that print media tax payer education (B=0.271, P=0.000), Electronic Taxpayer Education (B=0.477, p=0.000), Taxpayer Sensitization Programs (B=0.387, B=0.008) positively influence local service Tax Compliance in Wakiso District. Print media education leads increase in compliance, while electronic education boosts compliance. Digital platforms, such as social media and online resources, are crucial for improving tax compliance. Taxpayer sensitization programs such as community door to door campaigns also have a positive effect. A combined approach involving print media, electronic education, and sensitization programs are recommended for maximum effectiveness. The study recommends that Wakiso district local government adopt a multi-channel educational approach, utilizing print media, electronic media and workshops to enhance taxpayer engagement and compliance. This strategy should be complemented by targeted compliance initiatives from the central government, such as comprehensive educational campaigns, simplified tax processes, and incentives for timely payments to boost local service tax compliance. Integrating taxpayer education with effective compliance measures is crucial, ensuring that educational efforts not only inform but also encourage adherence to regulations. By aligning these strategies, the overall impact on local service Tax compliance can be significantly improved.