PUBLIC GOVERNANCE QUALITY AND TAX COMPLIANCE: A STUDY OF SMALL AND MEDIUM ENTERPRISES IN GOMBE METROPOLIS
Mohammed Abubakar Hamza, Ibrahim Abubakar Abubakar and Zakariyau Gurama
Volume 11 Issue 2
Abstract
This study examined the effect of public governance quality on tax compliance among SMEs in the Gombe metropolis, Nigeria. Public governance quality is proxied using voice and accountability, political stability, government effectiveness, adherence to the rule of law, anti-corruption measures, and regulation quality on tax compliance among SMEs in the Gombe metropolis. A survey research design was used and a sample size of Three hundred and twenty six (326) SMEs were drawn using a random sampling technique from the population of One thousand two hundred and two (1,202) SMEs registered with the Gombe State Ministry of Commerce and Industries as of October 2024. Data for the study were collected by administering a questionnaire and a structural equation model was employed for data analysis. The study established that voice and accountability, adherence to the rule of law, and anti-corruption measures positively and significantly affect the tax compliance of SMEs in the Gombe metropolis and that government effectiveness, political stability, and regulation quality positively and insignificantly affect tax compliance of SMEs in the Gombe metropolis. The study recommends among others that, the quality of governance should be enhanced by truly imbibing the tenets of representative democracy, and governments at all levels should make accountability and transparency their watchwords to get public trust and motivate taxpayers to comply with tax laws. Keywords: Public Governance Quality, Tax Compliance, Voice and Accountability, Rule of Law
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