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The effects of mass media campaigns on individual attitudes towards tax compliance; quasi-experimental evidence from survey data in Pakistan

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  • Cyan, Musharraf R.
  • Koumpias, Antonios M.
  • Martinez-Vazquez, Jorge

Abstract

Pakistan has consistently performed low on taxation, with revenue collection hovering around 10% of GDP. Tax reforms have been attempted but without significant gains in revenue collection. Due to the recalcitrance of tax revenues, the tax authority attempted to enlist voluntary compliance, as one of the avenues for its efforts to increase collections. This paper examines the effectiveness of mass media campaigns in the TV and national newspapers used by the Federal Board of Revenue (FBR) of Pakistan to increase awareness, tax filing, and, ultimately, tax morale. We use survey data that were collected in 2014 immediately after these mass media campaigns by the FBR. Using coarsened exact matching, we construct treatment and control groups that are nearly identical in terms of pretreatment balance of demographic and behavioral predictors of high tax morale. We find improved perceptions towards tax compliance in Pakistan for respondents exposed to the TV and newspaper advertisements. The choice of the advertisement's delivery device is important since the latter is more effective. Our findings provide empirical evidence that well-timed mass media campaigns can enhance voluntary tax compliance.

Suggested Citation

  • Cyan, Musharraf R. & Koumpias, Antonios M. & Martinez-Vazquez, Jorge, 2017. "The effects of mass media campaigns on individual attitudes towards tax compliance; quasi-experimental evidence from survey data in Pakistan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 70(C), pages 10-22.
    • Handle: RePEc:eee:soceco:v:70:y:2017:i:c:p:10-22
    DOI: 10.1016/j.socec.2017.07.004
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    1. Miloš Fišar & Tommaso Reggiani & Fabio Sabatini & Jiří Špalek, 2022. "Media negativity bias and tax compliance: experimental evidence," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(5), pages 1160-1212, October.
    2. Joel Slemrod & Obeid Ur Rehman & Mazhar Waseem, 2019. "Pecuniary and Non-Pecuniary Motivations for Tax Compliance: Evidence from Pakistan," NBER Working Papers 25623, National Bureau of Economic Research, Inc.
    3. Muhammad Omer Farooq Jajja & Arshad Ali Bhatti, 2022. "Tax Evasion, Low Tax Revenue and Non-Compliance in Pakistan: A Focused Group Discussion," Journal of Economic Impact, Science Impact Publishers, vol. 4(3), pages 289-298.
    4. Joel Slemrod & Obeid Ur Rehman & Mazhar Waseem, 2022. "How Do Taxpayers Respond to Public Disclosure and Social Recognition Programs? Evidence from Pakistan," The Review of Economics and Statistics, MIT Press, vol. 104(1), pages 116-132, March.
    5. Koumpias, Antonios M. & Martinez-Vazquez, Jorge, 2019. "The impact of media campaigns on tax filing: quasi-experimental evidence from Pakistan," Journal of Asian Economics, Elsevier, vol. 63(C), pages 33-43.
    6. Vanina Adoriana Trifan & Silviu Gabriel Szentesi & Lavinia Denisia Cuc & Mioara Florina Pantea, 2023. "Assessing Tax Compliance Behavior Among Romanian Taxpayers: An Empirical Case Study," SAGE Open, , vol. 13(3), pages 21582440231, September.
    7. Larissa M. Batrancea & Anca Nichita & Ruggero Agostini & Fabricio Batista Narcizo & Denis Forte & Samuel Paiva Neves Mamede & Ana Maria Roux-Cesar & Bozhidar Nedev & Leoš Vitek & József Pántya & Aidin, 2022. "A self-employed taxpayer experimental study on trust, power, and tax compliance in eleven countries," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-23, December.
    8. Rui Bruno Santos, 2023. "A Bibliometric Analysis between Communication and Tax Compliance," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(6), pages 321-334, June.
    9. Ibn e Hassan & Ahmed Naeem & Sidra Gulzar, 2021. "Voluntary tax compliance behavior of individual taxpayers in Pakistan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-23, December.

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    More about this item

    Keywords

    Tax morale; Tax compliance; Mass media campaigns; Information nudging; Moral suasion; Pakistan;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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