Table 6 Factors that influence tax...

Table 6

Factors that influence tax morale among agrochemical traders

Variables	OLS estimates	Quantile regression estimates
Variables	OLS estimates	0.05	0.25	0.5	0.75
Socioeconomic variables
Age	0.013	0.005^***	0.012	0.007	^***0.026
Age	(0.009)	(0.001)	(0.011)	(0.010)	(0.009)
Gender
Female	−0.021	^***−0.177	−0.059	0.045	−0.063
Female	(0.153)	(0.033)	(0.193)	(0.180)	(0.151)
Educational level
S H S	0.021	^***0.604	^**0.555	0.089	0.024
S H S	(0.195)	(0.043)	(0.246)	(0.230)	(0.192)
Diploma	^*−0.409	0.026	−0.089	−0.306	^*−0.384
Diploma	(0.216)	(0.047)	(0.274)	(0.255)	(0.214)
First degree	^**−0.581	^***−0.564	−0.417	^*−0.463	−0.320
First degree	(0.262)	(0.057)	(0.331)	(0.308)	(0.259)
Master’s/PhD	−0.622	^***-1.05	−0.351	−0.344	−0.829
Master’s/PhD	(0.719)	(0.157)	(0.908)	(0.846)	(0.711)
Religion
Christianity	^***2.248	^***2.77	^**2.177	^***2.121	^***2.065
Christianity	(0.673)	(0.147)	(0.850)	(0.792)	(0.665)
Islam	^***1.932	^***1.819	^**2.051	^***2.125	^*** 2.004
Islam	(0.674)	(0.147)	(0.851)	(0.793)	(0.666)
Christian denomination
Orthodox	0.012	^***0.245	0.227	0.211	−0.331
Orthodox	(0.247)	(0.054)	(0.313)	(0.291)	(0.245)
Charismatic	0.053	^**0.095	0.089	0.142	−0.032
Charismatic	(0.211)	(0.046)	(0.266)	(0.248)	(0.208)
Marital status
Single	0.013	−0.046	−0.337	−0.087	^*0.263
Single	(0.178)	(0.039)	(0.225)	(0.210)	(0.176)
Divorced	^*−0.635	^***−0.996	^**−1.084	−0.651	0.227
Divorced	(0.387)	(0.084)	(0.490)	(0.456)	(0.383)
Legal status
Partnership	^**−1.499	^***−1.415	^*−1.423	^**−1.626	^**−1.608
Partnership	(0.617)	(0.135)	(0.780)	(0.726)	(0.610)
Private company	0.090	^***0.182	−0.169	0.033	0.263
Private company	(0.184)	(0.040)	(0.233)	(0.217)	(0.182)
Work experience	−0.118	^***-0.517	−0.070	0.127	−0.059
Work experience	(0.202)	(0.044)	(0.255)	(0.238)	(0.200)
Job performance variables business size
Medium	−0.017	^**0.067	0.055	−0.038	0.059
Medium	(0.142)	(0.031)	(0.188)	(0.168)	(0.141)
Large	−0.194	^***0.498	−0.158	−0.254	−0.112
Large	(0.358)	(0.078)	(0.452)	(0.421)	(0.354)
Monthly sales	−3.480	^***−4.04	2.530	1.950	−9.230
Monthly sales	(0.120)	(1.560)	(8.990)	(8.380)	(7.040)
Award number	0.157	^***0.207	0.150	0.110	0.157
Award number	(0.111)	(0.024)	(0.141)	(0.131)	(0.110)
Perception of tax officers’ integrity
Respect	−0.051	^***−0.136	−0.026	−0.002	−0.066
Respect	(0.073)	(0.016)	(0.092)	(0.085)	(0.072)
Honesty	^*0.210	−0.025	0.008	0.099	^**0.250
Honesty	(0.116)	(0.025)	(0.146)	(0.136)	(0.114)
Trustworthy	−0.129	^***0.135	−0.069	−0.047	−0.105
Trustworthy	(0.113)	(0.025)	(0.143)	(0.133)	(0.112)
Perception of job of tax officers
Expertise	−0.081	^***−0.246	−0.051	−0.060	0.024
Expertise	(0.073)	(0.016)	(0.092)	(0.085)	(0.072)
Lockdown	^*0.073	0.010	0.071	0.071	^**0.102
Lockdown	(0.043)	(0.009)	(0.054)	(0.050)	(0.042)
Sanction	−0.005	^***0.085	0.036	0.018	−0.007
Sanction	(0.052)	(0.011)	(0.066)	(0.061)	(0.052)
Tax knowledge	0.325^**	^***0.536	^*0.305	0.129	−0.099
Tax knowledge	(0.155)	(0.033)	(0.196)	(0.183)	(0.153)
Cons	−0.755	^***-1.750	−1.033	−0.762	−0.970
Cons	(0.772)	(0.169)	(0.975)	(0.910)	(0.763)
Prob > F	0.005
R Square	0.508
Pseudo R² =		0.531	0.331	0.433	0.321
Brush Pagan/cook-
Wiesberg test
(Prob > χ²)		0.010

Variables	OLS estimates	Quantile regression estimates
Variables	OLS estimates	0.05	0.25	0.5	0.75
Socioeconomic variables
Age	0.013	0.005^***	0.012	0.007	^***0.026
Age	(0.009)	(0.001)	(0.011)	(0.010)	(0.009)
Gender
Female	−0.021	^***−0.177	−0.059	0.045	−0.063
Female	(0.153)	(0.033)	(0.193)	(0.180)	(0.151)
Educational level
S H S	0.021	^***0.604	^**0.555	0.089	0.024
S H S	(0.195)	(0.043)	(0.246)	(0.230)	(0.192)
Diploma	^*−0.409	0.026	−0.089	−0.306	^*−0.384
Diploma	(0.216)	(0.047)	(0.274)	(0.255)	(0.214)
First degree	^**−0.581	^***−0.564	−0.417	^*−0.463	−0.320
First degree	(0.262)	(0.057)	(0.331)	(0.308)	(0.259)
Master’s/PhD	−0.622	^***-1.05	−0.351	−0.344	−0.829
Master’s/PhD	(0.719)	(0.157)	(0.908)	(0.846)	(0.711)
Religion
Christianity	^***2.248	^***2.77	^**2.177	^***2.121	^***2.065
Christianity	(0.673)	(0.147)	(0.850)	(0.792)	(0.665)
Islam	^***1.932	^***1.819	^**2.051	^***2.125	^*** 2.004
Islam	(0.674)	(0.147)	(0.851)	(0.793)	(0.666)
Christian denomination
Orthodox	0.012	^***0.245	0.227	0.211	−0.331
Orthodox	(0.247)	(0.054)	(0.313)	(0.291)	(0.245)
Charismatic	0.053	^**0.095	0.089	0.142	−0.032
Charismatic	(0.211)	(0.046)	(0.266)	(0.248)	(0.208)
Marital status
Single	0.013	−0.046	−0.337	−0.087	^*0.263
Single	(0.178)	(0.039)	(0.225)	(0.210)	(0.176)
Divorced	^*−0.635	^***−0.996	^**−1.084	−0.651	0.227
Divorced	(0.387)	(0.084)	(0.490)	(0.456)	(0.383)
Legal status
Partnership	^**−1.499	^***−1.415	^*−1.423	^**−1.626	^**−1.608
Partnership	(0.617)	(0.135)	(0.780)	(0.726)	(0.610)
Private company	0.090	^***0.182	−0.169	0.033	0.263
Private company	(0.184)	(0.040)	(0.233)	(0.217)	(0.182)
Work experience	−0.118	^***-0.517	−0.070	0.127	−0.059
Work experience	(0.202)	(0.044)	(0.255)	(0.238)	(0.200)
Job performance variables business size
Medium	−0.017	^**0.067	0.055	−0.038	0.059
Medium	(0.142)	(0.031)	(0.188)	(0.168)	(0.141)
Large	−0.194	^***0.498	−0.158	−0.254	−0.112
Large	(0.358)	(0.078)	(0.452)	(0.421)	(0.354)
Monthly sales	−3.480	^***−4.04	2.530	1.950	−9.230
Monthly sales	(0.120)	(1.560)	(8.990)	(8.380)	(7.040)
Award number	0.157	^***0.207	0.150	0.110	0.157
Award number	(0.111)	(0.024)	(0.141)	(0.131)	(0.110)
Perception of tax officers’ integrity
Respect	−0.051	^***−0.136	−0.026	−0.002	−0.066
Respect	(0.073)	(0.016)	(0.092)	(0.085)	(0.072)
Honesty	^*0.210	−0.025	0.008	0.099	^**0.250
Honesty	(0.116)	(0.025)	(0.146)	(0.136)	(0.114)
Trustworthy	−0.129	^***0.135	−0.069	−0.047	−0.105
Trustworthy	(0.113)	(0.025)	(0.143)	(0.133)	(0.112)
Perception of job of tax officers
Expertise	−0.081	^***−0.246	−0.051	−0.060	0.024
Expertise	(0.073)	(0.016)	(0.092)	(0.085)	(0.072)
Lockdown	^*0.073	0.010	0.071	0.071	^**0.102
Lockdown	(0.043)	(0.009)	(0.054)	(0.050)	(0.042)
Sanction	−0.005	^***0.085	0.036	0.018	−0.007
Sanction	(0.052)	(0.011)	(0.066)	(0.061)	(0.052)
Tax knowledge	0.325^**	^***0.536	^*0.305	0.129	−0.099
Tax knowledge	(0.155)	(0.033)	(0.196)	(0.183)	(0.153)
Cons	−0.755	^***-1.750	−1.033	−0.762	−0.970
Cons	(0.772)	(0.169)	(0.975)	(0.910)	(0.763)
Prob > F	0.005
R Square	0.508
Pseudo R² =		0.531	0.331	0.433	0.321
Brush Pagan/cook-
Wiesberg test
(Prob > χ²)		0.010

Note(s): NB: Significance; 1% = ***, 5% = ** and 10% = *. NB: QR and OLS are short forms of quantile regression at different quantiles and ordinary least squares regression, respectively. Figures in parentheses are robust standard error. Lockdown means tax authorities use padlock to lock shops of tax evaders

Source(s): From authors’ computation based on 2021 field data.

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