PUBLIC GOVERNANCE QUALITY DETERMINANTS AND TAX COMPLIANCE AMONG MICRO AND SMALL ENTERPRISES IN GOMBE STATE, NIGERIA

Abstract

Despite the substantial effort by the government, income tax compliance among Micro and small-scale enterprises (MSEs) in Gombe State is low. Therefore, this study examined public governance quality determinants and tax compliance among MSEs in Gombe State. The study hypothesizes three (3) determinants to examine the relationship between PGQ and MSEs’ tax compliance in Gombe State, Using the quantitative approach, the study employs a self-administered questionnaire survey among 136 owner-managers of Registered MSEs with Ministry of Commerce, Trade and Tourism (MCTT) Gombe State, where 131 responses are usable for analysis purpose. Data was collected through the use of a questionnaire, and multiple regression was used in analyzing the collected data. The Multiple regression results reveal a positive and significant relationship between MSEs’ tax compliance government effectiveness, and political stability in Gombe State. Meanwhile, voice and accountability revealed a negative and insignificant relationship between MSEs’ tax compliance and PGQ in Gombe State. Based on these findings, the study recommended that the government should improve the number of infrastructures to ease enterprises' business activities, improve the level of stable political environment, and provide freedom of expression to the MSEs.