Analysis of factors affecting taxpayers' satisfaction with the quality of tax administrative services at the Tax Department of Ca Mau city, Ca Mau province - 1

NGUYEN THUY HUYNH

ANALYSIS OF FACTORS AFFECTING THE LEVEL OF TAXPAYERS' SATISFACTION WITH THE QUALITY OF TAX ADMINISTRATIVE SERVICES AT THE BRANCH

TAX OF CA MAU CITY, CA MAU PROVINCE

Major: Economic Statistics Code: 8310107

MASTER'S THESIS IN ECONOMICS

SCIENTIFIC INSTRUCTOR:

Assoc.Prof.Dr. NGUYEN VAN SI

Ho Chi Minh City 2018

COMMITMENT

I hereby certify that the Master's thesis " Analysis of factors affecting the level of satisfaction of taxpayers with the quality of tax administrative services at the Tax Department of Ca Mau City, Ca Mau Province " is my own research work. The data in the thesis is collected and used honestly. The research results presented in this thesis are not copied from any thesis and have not been presented or published in any work.

Ho Chi Minh City, month ….. year 2018

Author

NGUYEN THUY HUYNH

COVER PAGE STATEMENT OF GUARANTEE TABLE OF CONTENTS

INDEX

LIST OF ABBREVIATIONS LIST OF TABLES

LIST OF DRAWINGS

Page

CHAPTER 1: OVERVIEW OF THE RESEARCH TOPIC 1

1.1. Research reasons 1

1.2. Research problem 3

1.3. Research objective 3

1.4. Research question 3

1.5. Research subjects 4

1.6. Scope and duration of research 4

1.7. Research methods 4

1.8. Scientific and practical significance of topic 5

1.8.1. Scientific significance 5

1.8.2. Practical significance 5

1.9. Research content 6

CHAPTER 2: THEORETICAL BASIS 7

2.1. Theoretical basis of public administrative services 7

2.1.1. Concept of public administrative services 7

2.1.2. Service quality and public administrative service quality 7

2.1.2.1. Service quality 7

2.1.2.2. Quality of administrative services 8

2.2. Satisfaction with public administrative services 9

2.2.1. Concept of satisfaction with public administrative services 9

2.2.2. The role of meeting customer satisfaction with public administrative services 10

2.2.3. The relationship between public administrative service quality and customer satisfaction 10

2.3. Current status of tax payment of Ca Mau City Tax Department..12 2.3.1. Achievements 12

2.3.2. Limitations and causes 14

2.4. Overview of taxpayers and Tax Department 15

2.5. Overview of related research models 16

2.5.1. Some research models in the world 16

2.5.1.1. Parasuraman & Associates' 5-component service quality model 16

2.5.1.2. ACSI – American Customer Satisfaction Index Model 18

2.5.1.3. ECSI – European Satisfaction Index Model 19

2.5.2. Some domestic research models 20

2.5.2.1. VCSI model – Vietnam Customer Satisfaction Index 20

2.5.2.2. Model Dang Thanh Son, Le Kim Long and Do Van Cuong (2013)

.......................................................................................................................... 21

2.5.2.3. Nguyen Thi Nhan model (2006) 22

2.5.2.4. Do Huu Nghiem model (2010) 23

2.5.2.5. Model of Dam Thi Huong, Do Thi Hoa, Pham Bao Duong (2015) 23

2.5.2.6. Thai Ngoc Thanh Model (2015) 24

2.6. Proposed research model and hypotheses 25

2.6.1. Proposed research model 25

2.6.2. Research hypothesis 27

2.7. Summary of Chapter 2 28

CHAPTER 3: RESEARCH METHODOLOGY 29

3.1. Information to be collected 29

3.2. Sources of information collected 29

3.3. Research design 29

3.4. Preliminary research (qualitative) 32

3.5. Scale 34

3.6. Official research 35

3.6.1. Sample design 35

3.6.2. Data analysis 36

3.7. Summary of Chapter 3 39

CHAPTER 4: RESEARCH RESULTS 40

4.1. Descriptive statistics 40

4.1.1.Descriptive statistics of sample 40

4.1.2. Descriptive statistics of variables 41

4.2. Testing the reliability of the scale 47

4.3. Scale validation through exploratory factor analysis EFA 50

4.4. Research model after evaluating the scale 53

4.5. Testing the research model and hypotheses 54

4.5.1. Correlation analysis 54

4.5.2. Regression analysis 57

4.5.3. Testing hypotheses 61

4.5.4. Difference Analysis 61

4.6. Discussion of research results 67

4.7. Summary of Chapter 4 68

CHAPTER 5: CONCLUSION AND IMPLICATIONS 60

5.1. Conclusion 69

5.2. Policy implications 69

5.2.1. Improving staff capacity 69

5.2.2. Completing technical facilities 70

5.2.3. Improve the reliability and transparency of tax work

.......................................................................................................................... 72

5.2.4. Complete the technical process of tax 73

5.2.5. Increasing feedback creates fairness and democracy for taxpayers

.......................................................................................................................... 73

5.3. Limitations and future research directions 74

REFERENCES APPENDIX

LIST OF ABBREVIATIONS

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Table 2.1: Statistical table of elements of the proposed research model 26

Table 3.1: Response rate 36

Table 4.1: Sample information 40

Table 4.2: Average values ​​of factors 41

Table 4.3: Cronbach's Alpha analysis results table 47

Table 4.4: EFA analysis results table of independent variables 51

Table 4.5: EFA analysis results table of dependent variable 53

Table 4.6: Summary table of hypotheses in the research model after evaluating the scale 54

Table 4.7: Pearson correlation analysis table 55

Table 4.8: Model fit assessment table 57

Table 4.9: Model fit test table 58

Table 4.10: Statistical parameter table of each variable in the regression model ..58 Table 4.11: Summary table of hypothesis testing results 63

Table 4.12: Test results by gender 64

Table 4.13: Test results by educational level 65

Table 4.14: Test results by occupation 66

Table 4.15: Test results by age 66

Figure 2.1: The relationship between service quality and customer satisfaction

................................................................................................................................12

Figure 2.2: Searvquual model (Parasuraman & colleagues 1988) 17

Figure 2.3: US customer satisfaction index model 19

Figure 2.4: Satisfaction index model of European countries 20

Figure 2.5: Theoretical model of Vietnam's satisfaction index 21

Figure 2.6: Model for assessing taxpayer satisfaction at Kien Giang Provincial Tax Department 22

Figure 2.7: Do Huu Nghiem model (2010) 23

Figure 2.8: Model of Dam Thi Huong, Do Thi Hoa Nha, Pham Bao Duong (2015) 24

Figure 2.9: Thai Ngoc Thanh model (2015) 25

Figure 2.10: Proposed research model 26

Figure 3.1: Research process 32

Figure 4.1: Standardized residual plot 60

Chapter 1: OVERVIEW OF THE RESEARCH TOPIC

1.1. Reason for research

In the contemporary financial system, tax is not only a tool to generate revenue for the State budget, contributing to consolidating public resources but also plays an important role in stimulating economic growth. Due to the great importance of tax, administrative reform in the tax sector to create an open and convenient tax management mechanism, encouraging domestic and foreign investment is the work that the Party and State pay special attention to in national administrative reform. In 2017, the Tax sector synchronously deployed many solutions to increase revenue, prevent budget loss, associated with administrative reform, creating favorable conditions for taxpayers, thanks to which the budget revenue in the year is estimated at 1,101,600 billion VND, equal to 103.4% of the estimate, up 9.6% over the same period in 2016. Ca Mau City Tax Department is an agency under the Ca Mau Provincial Tax Department. In the context of tax administrative reform of the whole country in general and Ca Mau Province in particular, in recent times, Ca Mau City Tax Department has made many improvements in service provision (DV) to bring better service quality (CLDV) to taxpayers (NNT) as well as ensure the highest completion of the assigned budget collection task. The implementation results show that tax management has achieved many positive results, receiving the support of the majority of people. However, besides that, there are still many shortcomings from tax policy, from tax authorities and from civil servants directly creating products and services, not really meeting the increasing requirements of the innovation process.

The tax system reform strategy for the period 2011 - 2020 was approved by the Prime Minister in Decision 732/QD-TTg dated May 17, 201 focusing on the following general goals: Building a synchronous, unified, fair, effective tax policy system, suitable for a socialist-oriented market economy.

Meaning; reasonable measures to facilitate domestic production and is one of the effective and efficient macroeconomic management tools of the Party and State. Building a modern tax sector in Vietnam, effective and efficient; unified, transparent, simple, easy-to-understand, easy-to-implement tax, fee and charge management based on three basic foundations: transparent tax policy institutions, simple, scientific tax administrative procedures in line with international practices; high-quality, honest human resources; application of modern information technology, with high connectivity, integration and automation.

With the role of managing the enforcement of tax laws, the tax sector has recently made many efforts in reforming public administrative services (PSAs) to improve service quality and taxpayer satisfaction. Implementing Resolution 25/NQ-CP and Resolution 68/NQ-CP of the Government on simplifying administrative procedures, the entire tax sector immediately publicized the list of tax administrative procedures at the "one-stop" department of tax agencies at all levels. At the same time, the tax sector has reviewed and simplified 100% of tax administrative procedures. On December 12, 2014, the General Director of the General Department of Taxation issued Decision No. 2297/QD-TCT approving the project "Assessing taxpayers' satisfaction with tax authorities' services" to assess the level of satisfaction with tax policies, satisfaction with tax administrative procedures, satisfaction with the service attitude of tax officials... thereby providing reasonable solutions and proposals to create more favorable conditions for taxpayers as well as ensuring the effectiveness of tax management. However, in reality, many areas of tax management and administrative procedures still cause difficulties for individuals and organizations.

Therefore, the selected topic  "Analysis of factors affecting the level of satisfaction of taxpayers with the quality of tax administrative services at the Ca Mau City Tax Department, Ca Mau Province"  with the tool used is the public service quality survey form, will help collect relatively authentic feedback from taxpayers, which is really meaningful to help the Ca Mau City Tax Department see the exact feelings from the users of the services, thereby making reasonable adjustments to implement.

perform well the state management function in the tax field, meeting the requirements of integration and development.

1.2. Research problem

Identify issues related to factors affecting the quality of public administrative services that taxpayers are interested in, worried about, demanding, satisfied with... From there, find out the factors that have the strongest influence on the quality of public administrative services that impact the satisfaction of taxpayers when using this service and draw out effective solutions to improve the quality of service of tax authorities in Ca Mau City, Ca Mau province.

1.3. Research objectives

-  General objectives:

Assess the level of satisfaction of taxpayers with tax administrative services at the Tax Department of Ca Mau City, Ca Mau Province, thereby providing policy implications to improve the service quality of tax authorities in Ca Mau City.

-  Specific objectives:

-  Identify factors affecting taxpayers' satisfaction with administrative services of Ca Mau City Tax Department, Ca Mau province.

-  Measure the impact level of factors on taxpayers' satisfaction with tax administrative services at the Ca Mau City Tax Department, Ca Mau province and the interaction between factors.

-  Based on the assessment of taxpayers, build implications to improve the quality of tax administrative services at the Tax Department of Ca Mau City, Ca Mau province, increasing taxpayers' satisfaction.

1.4. Research questions

In order to solve the research problem, some questions are posed to the author:

-  What factors affect the taxpayer's satisfaction with tax administrative services at the Ca Mau City Tax Department, Ca Mau province?

-  How does each factor affect taxpayers' satisfaction with tax administrative services at the Ca Mau City Tax Department, Ca Mau province?

-  What should the Ca Mau City Tax Department, Ca Mau province, do to improve taxpayers' satisfaction with tax administrative services at the Department?

1.5. Research subjects

-  Research object: Research topic on taxpayers' attitude towards tax administrative services at the Tax Department of Ca Mau City, Ca Mau province.

-  Survey subjects: taxpayers at the Tax Department of Ca Mau City, Ca Mau province.

1.6. Scope and duration of research

- Scope of research: Due to limited research time, the research was only conducted in Ca Mau City, Ca Mau province.

- Research period: Data was collected in Ca Mau city in stages: qualitative research from July 1, 2017 to July 15, 2017, preliminary quantitative research from August 1, 2017 to August 15, 2017, official research for 1 month from September 1, 2017 to the end of September 2017.

1.7. Research methods

The research was conducted through two main steps: preliminary research and formal research through the use of two methods: qualitative and quantitative.

-  Qualitative research: is a study of interviewing experts to determine factors affecting employee satisfaction. Preliminary research is conducted using qualitative methods to explore influencing factors and at the same time re-evaluate the questions in the interview questionnaire through the pilot interview process. The purpose of this study is to adjust and supplement the QoL scale.

-  Quantitative research: is an official research with data collection technique of interviewing through closed questionnaire based on the views and opinions of taxpayers on tax administrative service quality at Ca Mau City Tax Department, Ca Mau province.

-  Collected information will be processed using SPSS software. After being evaluated by Cronbach's Alpha reliability coefficient and EFA exploratory factor analysis, correlation regression analysis is used to test the research model.

1.8. Scientific and practical significance of the topic

1.8.1. Scientific significance

The study is based on some information on the impact of factors affecting the SHL of taxpayers on the quality of services of the Tax Department in Vietnam. Its results will contribute to providing knowledge related to the development and planning to improve the SHL of taxpayers on the quality of services of the Tax Department. Therefore, the topic will contribute to the documents on the field of public administrative services in both theoretical aspects. In addition, this study can be used as a reference for researchers on issues related to the field of public administrative services, contributing a part of the theoretical basis for further studies in this field.

1.8.2. Practical meaning

Specifically, the research results of this topic bring some meanings as follows:

-  Provide practical information on factors affecting taxpayers' ability to provide tax administrative services at the Ca Mau City Tax Department, Ca Mau province.

-  Explore the relative importance of factors affecting taxpayers' SHL for tax administrative services at the Tax Department of Ca Mau City, Ca Mau province.

-  Point out the level of influence of factors affecting taxpayers' satisfaction with tax administrative services to help the Ca Mau City Tax Department, Ca Mau province better understand people's feelings about tax administrative services in order to improve their satisfaction.

-  Serve as a basis for Tax Departments to refer to, gain deeper understanding of administrative service quality at the agency and plan appropriate administrative reform.

1.9. Research content

The thesis consists of 5 chapters as follows:  Chapter 1 : Overview of the research topic.  Chapter 2 : Theoretical basis

Chapter 3 : Research methods

Chapter 4 : Research results

Present research results. Present information about the survey sample, model testing and measurement of research concepts, and analyze and evaluate the results obtained.

Chapter 5 : Conclusion and Implications

Suggesting some solutions to improve the SHL of taxpayers for tax administrative services at the Tax Department of Ca Mau City, Ca Mau Province. At the same time, pointing out the limitations of the topic and proposing further research directions.