EFFECT OF PERSONAL INCOME TAX DETERMINANTS ON TAX COMPLIANCE AMONG MICRO-ENTERPRISE IN TARABA STATE

Abstract

The impact of income taxes to the total revenue of Nigeria’s government continued consistently low and is relatively shrinking due to low tax compliance. This study assesses the effect of personal income tax determinants on tax compliance among micro-enterprise in Taraba State. The study used survey cross-sectional research design and collected data using primary method through self-administered questionnaire. The population of this study is 205,418 micro-enterprise Taraba, while the sample size of 384 personal income tax payers. Regression analysis was used as techniques of data analysis with the help of SPSS version 23. The results showed that tax fairness has significant negative effect with tax compliance in Taraba state, Nigeria, Moreover, the results showed that tax knowledge and probability of detection, tax service quality have significant positive effect with tax compliance in Taraba State, Nigeria, while trust in government is not significant. Therefore, the study recommends that tax authorities in Taraba State prioritize continuous taxpayer education to enhance tax knowledge among micro enterprises, while also strengthening enforcement measures such as audits and sanctions to increase the probability of detection and discourage evasion. Improving the quality of tax services through transparency, efficiency, and the use of modern technology is equally essential to encourage voluntary compliance. Finally, rebuilding trust in government requires greater accountability, anti-corruption initiatives, and effective utilization of tax revenue in ways that directly benefit taxpayers.