The Effect of Tax Fairness Perception and Transparency on Individuals’ Compliance Through Tax Morale
DOI:
https://doi.org/10.47067/ramss.v8i4.554Keywords:
Tax Compliance, Perceived Tax Fairness, Tax Morale, Individual TaxpayersAbstract
International Center for Tax and Development recently found that 50% of states around the globe rely 80% on taxation revenue to meet their expenditures. However, Large number of developing states including Pakistan have to deal with curse of low tax compliance. In Pakistan, taxation system is facing major barrier to compliance in terms of trust deficit among citizens regarding tax authorities. The study emphasizes different perspectives on taxes and how they work, highlighting that paying taxes is a civic duty that helps people feel more connected to their government and not just a financial one. Transparency, efficiency, fairness, and simplicity are some of the key features of an effective tax system that are discussed. The study also examined particulars of the tax system in Pakistan, describing its goals to guarantee fair resource distribution and foster economic expansion. This article discusses the significance of tax morale as well as the ways in which taxpayers' perceptions of the effectiveness and fairness of the tax system influence their compliance with the law. The overarching objective of this article is to provide readers with a comprehensive understanding of the multifaceted function that taxes play in society, as well as the ways in which they influence governance and economic progress.
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