Optimizing Tax Compliance Strategies Through Behavioral Insights: A Solution to Revenue Leakages in Emerging Economies

Abstract

This study investigates the persistent challenges of tax compliance in emerging economies, which are plagued by significant revenue leakages. Utilizing a mixed-methods approach that combines qualitative interviews with quantitative surveys, we explore the behavioral and psychological factors that contribute to non-compliance. Our findings reveal that tailored communication strategies and the application of behavioral nudges can effectively enhance taxpayer compliance rates. This research provides actionable insights for policymakers aiming to bolster tax revenues without imposing increased financial burdens on citizens. Ultimately, our study offers a novel framework for addressing tax compliance issues in emerging markets and contributes to economic stability.