<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>Tax avoidance and tax evasion remain critical challenges for central or local governments and municipalities. This non-compliance also represents an ethical issue since individuals who benefit from publicly provided services do not contribute to their financing as they are legally required. The study aimed to test whether the use of behavioural interventions would reduce the number of non-payers of the garbage collection fee in the city of Hlohovec, Slovakia. The experiment was carried out by distributing leaflets to households with permanent residence in Hlohovec. The subjects of the experiment were randomly divided into three groups. Households in the control group (number of households is 1,718) did not receive any leaflets, households in the first intervention group (number of households is 1,721) received a leaflet containing a social norm, and households in the second intervention group (number of households is 1,625) received a leaflet containing a deterrent message. Ordinary least squares (OLS) regressions were used to analyse the data. The results showed that using a social norm did not significantly increase the number of garbage collection fee payers. At the same time, leaflets with deterrent messages led to an increase in outstanding debt. These results suggest that people reacted unfavorably to the perceived threat (deterrent message), and the opposite effect occurred, i.e. this type of intervention led to an increase in the number of non-payers of garbage collection fee.</p>
</abstract>

Tax avoidance and tax evasion remain critical challenges for central or local governments and municipalities. This non-compliance also represents an ethical issue since individuals who benefit from publicly provided services do not contribute to their financing as they are legally required. The study aimed to test whether the use of behavioural interventions would reduce the number of non-payers of the garbage collection fee in the city of Hlohovec, Slovakia. The experiment was carried out by distributing leaflets to households with permanent residence in Hlohovec. The subjects of the experiment were randomly divided into three groups. Households in the control group (number of households is 1,718) did not receive any leaflets, households in the first intervention group (number of households is 1,721) received a leaflet containing a social norm, and households in the second intervention group (number of households is 1,625) received a leaflet containing a deterrent message. Ordinary least squares (OLS) regressions were used to analyse the data. The results showed that using a social norm did not significantly increase the number of garbage collection fee payers. At the same time, leaflets with deterrent messages led to an increase in outstanding debt. These results suggest that people reacted unfavorably to the perceived threat (deterrent message), and the opposite effect occurred, i.e. this type of intervention led to an increase in the number of non-payers of garbage collection fee.

Enhancing garbage fee compliance: Insights from a Slovak municipality

Department of Economics, Faculty of Economics and Finance

Department of Finance, Faculty of Economics and Finance

Economics and Business Review

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Enhancing garbage fee compliance: Insights from a Slovak municipality"}

Tax avoidance and tax evasion remain critical challenges for central or local governments and municipalities. This non-compliance also represents an ethical...

Enhancing garbage fee compliance: Insights from a Slovak municipality

Pubblicato online: 13 lug 2024

Pagine: 143 - 164

Ricevuto: 23 feb 2024

Accettato: 10 giu 2024

DOI: https://doi.org/10.18559/ebr.2024.2.1180

Parole chiave
behavioural interventions, nudge, randomised controlled trial, garbage fee collection, local government, social norm, deterrence

© 2024 Anetta Caplanova et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Enhancing garbage fee compliance: Insights from a Slovak municipality

Pubblicato online: 13 lug 2024

Pagine: 143 - 164

Ricevuto: 23 feb 2024

Accettato: 10 giu 2024

DOI: https://doi.org/10.18559/ebr.2024.2.1180

Parole chiavebehavioural interventions, nudge, randomised controlled trial, garbage fee collection, local government, social norm, deterrence

© 2024 Anetta Caplanova et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Parole chiave
behavioural interventions, nudge, randomised controlled trial, garbage fee collection, local government, social norm, deterrence