A tax system to be called fair must assess the tax liability of each tax-payer without any biases. Most studies suggest a positive relationship between tax fairness perception and compliance behavior. This relation can only be ascertained if the factors of tax fairness are known. This study investigates the dimensions of tax fairness in India concerning the recently implemented Goods and Services Tax (GST). A survey questionnaire on tax fairness was developed and administered to a sample of 210 business people belonging to the micro, small, and medium enterprises (MSME) sector. Measures of central tendency, factor analysis, and reliability analysis identify five robust tax fairness dimensions: General Fairness, Exchange with Government, Process Equity, Inter-Group Equity, and Tax Rate Structure. By identifying the dimensions of tax fairness, the perception of tax-payers can be understood, and the factors leading to tax evasion can be curbed.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.