The Importance of Service Quality in Taxpayer Compliance

Oct 13, 2025 by talynt.org 101 views

Taxpayer compliance is a crucial issue in the world of taxation, as non-compliance can lead to a range of negative consequences, including tax evasion, smuggling, and neglect of tax obligations. These actions not only reduce state or regional income but also undermine the integrity of the tax system. In the context of the South Medan Samsat Office, extortion practices and complicated processes have been a major concern that can affect the satisfaction and compliance of taxpayers. Therefore, it is essential to investigate the factors that influence the level of community compliance in meeting tax obligations.

The Importance of Service Quality in Taxpayer Compliance

Service quality is a critical factor that can significantly impact taxpayer compliance. Good service quality not only creates a positive experience for taxpayers but also builds trust between the community and government agencies. When the service procedure is easier and more transparent, taxpayers are more motivated to fulfill their obligations. In contrast, poor service quality can lead to frustration, dissatisfaction, and ultimately, non-compliance.

In the context of the South Medan Samsat Office, the quality of services provided by government agencies has been a major concern. The office has been plagued by extortion practices and complicated processes, which can affect the satisfaction and compliance of taxpayers. Therefore, it is essential to investigate the effect of service quality on taxpayer compliance in this office.

Research Methodology

This study employed an associative research design that used quantitative data analysis. The population of this research consisted of the community who have paid or paying motor vehicle taxes in the South Medan Samsat Office in the last two months, with a total population of 11,392 people. The research sample was determined as many as 99 people using the Slovin formula. The research instrument used was a questionnaire with a Likert scale, and data analysis was carried out using Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) program.

Results and Discussion

The results of this study showed that service quality had a positive and significant influence on taxpayer compliance at the South Medan Samsat Office, with a T-Statistic value greater than T-Table (28,554> 1,660). The coefficient of determination or R square obtained is 0.785. This means that the effect of service quality on taxpayer compliance reaches 78.5%, while 21.5% is influenced by other variables outside of this study. These results indicate that improving service quality is directly proportional to the increase in taxpayer compliance at the South Medan Samsat Office.

Implications and Recommendations

This finding confirms how important the quality of services is in improving community compliance with tax obligations. Good service quality not only creates positive experiences for taxpayers but also builds trust between the community and government agencies. If the service procedure is easier and more transparent, the taxpayer will be more motivated to fulfill its obligations.

In addition, efforts to improve service quality need to involve training for officers, improvement of infrastructure, and the application of technology that facilitates the payment process. For example, application development or online system for tax payments can reduce waiting time and make the process more efficient.

The importance of tax compliance cannot be underestimated, because it is one of the sources of state income used for infrastructure development and public services. Therefore, there needs to be a synergy between the government and the community to create a conducive environment for tax compliance. If the quality of service can be improved, it is expected that the level of tax compliance will also increase significantly, so that state income can be maintained and development can continue.

Conclusion

In conclusion, this study has shown that service quality has a significant impact on taxpayer compliance in the South Medan Samsat Office. The results of this study have important implications for government agencies and policymakers, highlighting the need to improve service quality to increase taxpayer compliance. By improving service quality, government agencies can create a more conducive environment for tax compliance, which is essential for maintaining state income and promoting development.

Limitations and Future Research Directions

This study has several limitations that need to be addressed in future research. Firstly, the study only focused on the South Medan Samsat Office, and future research should investigate the effect of service quality on taxpayer compliance in other government agencies. Secondly, the study only used a quantitative approach, and future research should employ a mixed-methods approach to provide a more comprehensive understanding of the issue.

Recommendations for Policy and Practice

Based on the findings of this study, the following recommendations are made for policy and practice:

Government agencies should prioritize improving service quality to increase taxpayer compliance.
Training for officers should be provided to improve their knowledge and skills in providing good service quality.
Infrastructure should be improved to facilitate the payment process and reduce waiting time.
Technology should be applied to facilitate the payment process and make it more efficient.
A synergy between the government and the community should be created to create a conducive environment for tax compliance.

By implementing these recommendations, government agencies can improve service quality and increase taxpayer compliance, which is essential for maintaining state income and promoting development.

In this article, we will address some of the frequently asked questions (FAQs) related to the effect of service quality on taxpayer compliance.

Q1: What is the significance of service quality in taxpayer compliance?

A1: Service quality is a critical factor that can significantly impact taxpayer compliance. Good service quality not only creates a positive experience for taxpayers but also builds trust between the community and government agencies. When the service procedure is easier and more transparent, taxpayers are more motivated to fulfill their obligations.

Q2: How does service quality affect taxpayer compliance?

A2: The results of this study showed that service quality had a positive and significant influence on taxpayer compliance at the South Medan Samsat Office, with a T-Statistic value greater than T-Table (28,554> 1,660). The coefficient of determination or R square obtained is 0.785. This means that the effect of service quality on taxpayer compliance reaches 78.5%, while 21.5% is influenced by other variables outside of this study.

Q3: What are the implications of this study for government agencies and policymakers?

A3: The findings of this study have important implications for government agencies and policymakers, highlighting the need to improve service quality to increase taxpayer compliance. By improving service quality, government agencies can create a more conducive environment for tax compliance, which is essential for maintaining state income and promoting development.

Q4: What are the limitations of this study?

A4: This study has several limitations that need to be addressed in future research. Firstly, the study only focused on the South Medan Samsat Office, and future research should investigate the effect of service quality on taxpayer compliance in other government agencies. Secondly, the study only used a quantitative approach, and future research should employ a mixed-methods approach to provide a more comprehensive understanding of the issue.

Q5: What are the recommendations for policy and practice based on this study?

A5: Based on the findings of this study, the following recommendations are made for policy and practice:

Government agencies should prioritize improving service quality to increase taxpayer compliance.
Training for officers should be provided to improve their knowledge and skills in providing good service quality.
Infrastructure should be improved to facilitate the payment process and reduce waiting time.
Technology should be applied to facilitate the payment process and make it more efficient.
A synergy between the government and the community should be created to create a conducive environment for tax compliance.

Q6: How can taxpayers contribute to improving service quality?

A6: Taxpayers can contribute to improving service quality by providing feedback and suggestions to government agencies. They can also participate in training programs and workshops to improve their knowledge and skills in using government services.

Q7: What are the benefits of improving service quality for taxpayers?

A7: Improving service quality can benefit taxpayers in several ways, including:

Reduced waiting time and increased efficiency in the payment process.
Improved transparency and accountability in government services.
Increased trust and confidence in government agencies.
Better access to government services and information.

Q8: How can government agencies measure the effectiveness of service quality improvement initiatives?

A8: Government agencies can measure the effectiveness of service quality improvement initiatives by using various metrics, including:

Customer satisfaction surveys.
Service quality ratings.
Waiting time and processing time metrics.
Feedback and complaints analysis.

By implementing these recommendations and measuring the effectiveness of service quality improvement initiatives, government agencies can create a more conducive environment for tax compliance and promote development.