The Factors Affecting Tax Collection from E-Commerce Firms in Lao PDR

Abstract

Fulfilling tax obligations to the government from e-commerce businesses constitutes a significant issue raised in academic discussions. Consequently, identifying the underlying causes and implementing appropriate measures are essential to promote the establishment of comprehensive systems and regulatory frameworks. These frameworks should effectively manage and promote domestic e-commerce while integrating trade regionally and internationally, thereby ensuring fair competition, protecting consumers, and generating state revenue efficiently. This study aims to examine the factors influencing revenue collection from e-commerce businesses in the Lao PDR. The study employs a Logit model analysis based on survey data from 79 e-commerce business entities in the country. The results identify two key factors: the provision of tax payment guidance to entrepreneurs and businesses' perceptions of public sector services (the entrepreneurs' trust in the state). These factors significantly influence revenue collection from e-commerce businesses in the Lao PDR. These findings are of considerable significance for refining policies and management measures pertaining to tax revenue collection. Furthermore, they are instrumental in addressing the problems and obstacles that e-commerce businesses encounter during the tax payment process.