PERCEIVED FAIRNESS OF TAX INCENTIVES AND ITS EFFECT ON TAX ATTITUDES AMONG GIG WORKERS IN SOUTH-WEST NIGERIA
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Date
2025
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International Journal of Education, Business and Economics Research
Abstract
The rapid growth of the gig economy has redefined labor markets, with freelance broadcasters
emerging as significant contributors to Nigeria’s informal digital sector. However, tax compliance
remains low among this group due to irregular earnings, limited awareness, and digital barriers.
This study investigates how perceptions of tax incentive fairness influence tax compliance attitudes
among gig workers in South-West Nigeria, focusing on freelance broadcasters and examining
digital literacy as a moderating factor. Drawing from Rational Choice Theory and the Diffusion of
Innovations Theory, the study adopts a quantitative research design, targeting 384 respondents
comprising Internal Revenue Service (IRS) staff and freelance media professionals. Data was
analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) indicates that
perceived fairness exerts a significant positive influence on tax attitudes (β = 0.42, p < 0.001), and
that digital literacy significantly moderates this effect (β = 0.19, p = 0.037). Results reveal that
perceived fairness of tax incentives, such as flat-rate schemes and micro-deductions significantly
affects compliance behavior. Furthermore, digital literacy positively moderates this relationship by
improving understanding and usage of e-tax platforms. Normality and collinearity tests validated
the dataset, while predictive relevance analysis showed the model explained 48.2% of the variance
in tax compliance. The study recommends that tax authorities develop digital-friendly, gig-specific
incentives, and integrate identity-linked benefits into formal tax platforms. Such strategies can
improve compliance, build trust, and drive fiscal inclusion in Nigeria’s expanding gig economy.
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To cite this article: Abdulrasheed Taiwo Abdullahi, Prof. Mubaraq Sanni, Dr. Mustapha Abdulrasaq, Dr. Salaudeen Ibrahim, Dr. Abdul-Hakeem Shuaib and YinusaAdeshina Rafiu (2025). Perceived Fairness Of Tax Incentives And Its Effect On Tax Attitudes Among Gig Workers In South-West Nigeria. International Journal of Education, Business and Economics Research (IJEBER) 5 (4): 55-75