Factors Influencing Taxpayer Compliance Behaviour Among Small and Medium Enterprises: Evidence from the Clothing Sector in Lusaka, Zambia

Cindy Libanda and Norman Kachamba
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Cindy Libanda: University of Zambia
Norman Kachamba: University of Zambia

African Journal of Commercial Studies, 2026, vol. 7, issue 3

Abstract: This study investigated the factors influencing taxpayer compliance behaviour among small and medium enterprises (SMEs) in the clothing sector in Lusaka, Zambia. The study focused on the roles of taxpayer education, perceived fairness of the tax system, and cultural norms in shaping compliance behaviour. A mixed-methods research design was employed, combining quantitative survey data with qualitative interviews. A sample of 246 SME owners was selected using a combination of simple random and purposive sampling techniques. Data were analyzed using descriptive statistics, inferential analysis, and thematic analysis. Findings revealed that taxpayer education significantly enhances compliance, with 70.1% of respondents aware of their tax obligations, although 54.5% had not participated in formal tax education programmes. A large proportion of respondents (74.4%) perceived tax rates as unfair, highlighting the need for policy reform. Cultural norms were also found to play a significant role, with 50.7% acknowledging their influence on compliance behaviour. Multiple regression results (R² = 0.645) indicated that taxpayer education, perceived fairness, and sociocultural norms jointly explain approximately 64.5% of the variation in tax compliance behaviour. The study concludes that improving compliance among SMEs requires a multifaceted approach involving education, policy reform, and cultural engagement. It recommends targeted taxpayer education programmes, enhanced transparency in tax administration, simplification of tax regulations, and community-based initiatives to strengthen compliance culture.

Keywords: Tax Compliance; Tax Evasion; Cultural Norms; Taxpayer Education; SMEs; Perceived Fairness; Zambia (search for similar items in EconPapers)
JEL-codes: D91 H25 H26 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:cwk:ajocsk:2026-73

DOI: 10.59413/ajocs/v7.i3.2

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