The Role of Marketing Mix on Voluntary Tax Compliance: Small Taxpayers’ Experience in Dodoma City

Abstract

Importance of 4Cs of marketing mix on voluntary tax compliance has been acknowledged. However, contrary to its importance, the body of literature has paint little attention regarding 4Cs of marketing mix in relation to the voluntary tax compliance. Therefore, the purpose of this study was to analyse the influence of the 4 Cs of marketing mix on voluntary tax compliance among small taxpayers. This study applied explanatory cross-sectional survey design to collect and analyse both quantitative and qualitative data. The quantitative data were collected from small business managers/owners who were selected using systematic random sampling technique, while qualitative data were collected from three TRA officers selected purposively. The quantitative data was gathered using structured questionnaire from 240 managers/owners of small businesses in Dodoma City. The quantitative data were analysed using descriptive statistics and binary logistic regression model, while qualitative data were analysed using content analysis. The findings of this study indicate that, satisfaction of customer needs and wants, convenience of tax compliance and communication between TRA and tax-payers have positive and significant association with voluntary tax compliance. However, cost of tax compliance has negative and significant effect on voluntary tax compliance. The findings of the study bring knowledge contribution by adding in the body of empirical literature on tax compliance the effect of 4Cs of marketing mix on the voluntary tax compliance among small tax-payers. Based on findings this study recommends to TRA to review tax compliance procedures and documentations so as to identify all unnecessary to be removed.

Keywords

• marketing mix
• tax-payer
• voluntary tax compliance
• 4ps