Taxpayer Satisfaction Transformation: A Text Mining Analysis of Service Delivery at Jakarta’s Tax Offices

Abdurrahman Rahim Thaha, Rita Purnamasari and Aji Fajar Suryo Antoro

Journal of Tax Reform, 2024, vol. 10, issue 3, 441-458

Abstract: Taxpayer satisfaction is critical to driving voluntary compliance and the overall effectiveness of the tax system. In Jakarta, service quality at the Tax Office (KPP) significantly affects taxpayer perceptions and satisfaction. Positive interactions with KPP foster trust in government institutions and increase voluntary tax compliance. This study uses advanced data analysis techniques to assess taxpayer satisfaction by analyzing more than 8,000 Google reviews of tax offices in Jakarta. Sentiment analysis categorizes reviews into positive, neutral and negative sentiments. Topic modeling with Latent Dirichlet Allocation (LDA) identified key themes, such as service efficiency, administrative procedures, and staff interaction. K-means clustering grouped the tax offices based on service perceptions. This analysis shows significant variation in taxpayer satisfaction across different tax offices. Some tax offices excel in terms of service efficiency and clarity, receiving mostly positive reviews, while others struggle with suboptimal service delivery and lengthy processes, resulting in negative feedback. Topic modeling highlighted key areas of concern for taxpayers, including service speed, administrative procedures, and staff interaction. Clustering analysis identified distinct groups of tax offices, each with unique challenges and strengths in service delivery. The findings suggest targeted interventions to address specific issues in underperforming tax offices. By aligning service improvements with issues identified by taxpayers, tax authorities can significantly improve satisfaction and compliance. This approach allows for strategies to be tailored to the specific needs of each cluster. This study contributes to public sector reform by showing how taxpayer feedback can be systematically analyzed to inform service improvements. The methodology and findings offer a replicable model for other regions looking to use data-driven insights to improve government services. Improving taxpayer satisfaction is critical to fostering greater public trust and achieving higher tax compliance.

Keywords: public sector reform; sentiment analysis; service delivery; taxpayer satisfaction; topic modeling (search for similar items in EconPapers)
JEL-codes: C38 H21 H83 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:aiy:jnljtr:v:10:y:2024:i:3:p:441-458

DOI: 10.15826/jtr.2024.10.3.177

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