Factors Influencing Income Tax E-filing: A Combined Theoretical Model Approach in Bangladesh
The Cost and Management, Volume-49, Number-06, November-December 2021
20 Pages Posted: 18 Apr 2022 Last revised: 25 Apr 2022
Date Written: December 7, 2021
E-filing of income tax return can be seen as an important means to enhance the value of services to the citizen. This paper investigates whether tax knowledge influences the level of intention of individual taxpayers to use E-filing after five years of its implementation in Bangladesh. The study examines factors that might influence taxpayers’ level of intention for E-filing based upon the theoretical framework of combined models and the concept of general knowledge about tax. The survey was conducted on 384 respondents’ individual taxpayers within the capital city of Dhaka in 2020. It shows that respondents have a high level of intention for E-filing (4.67 out of 5). Advanced statistical outputs show that perceived advantages, perceived comfortable to use and perceived subjective norms are positively associated, but perception on behavioral control and general knowledge about tax are not significantly associated with taxpayers’ intention for E-filing. The results from this study suggest that E-filing is a computerized system, just like any other system, where taxpayers’ intention to use it is also influenced by constructs within the technology acceptance model and the theory of planned behavior approach. Furthermore, the implementation of E-filing will be successful when it can provide a compulsory service delivery channel through the electronic platform. Since the National Board of Revenue (NBR) is currently promoting the use of E-filing, the results may assist the NBR to plan a more effective strategy of promoting E-filing usage among individual taxpayers in Bangladesh.
Keywords: Taxation, taxpayers, E-filing, E-government, digitization, knowledge, behavior, intention
JEL Classification: H2, H20, H21, H22, H23, H24, H25, H26, H27, H29
Suggested Citation: Suggested Citation