THE NEED FOR TAX LITERACY EDUCATION AND THE MEANING OF TAX PAYMENTS AS NON-PHYSICAL STATE DEFENSE FOR MSMES: A QUALITATIVE STUDY
Published:
2026-10-30Downloads
Abstract
Taxes are a major source of state revenue, yet many micro, small, and medium enterprises (MSMEs) still struggle to understand and fulfill their tax obligations. This study explores the need for tax literacy education among MSMEs and how they interpret tax payments in relation to non-physical national defense. The study used a qualitative approach with a descriptive design. Semi-structured interviews were conducted with four MSMEs and one tax officer, then analyzed using reflexive thematic analysis . Three themes emerged: (1) variations in tax literacy and the need for practical education; (2) ignorance of basic tax obligations as a major barrier, with compliance tending to be reactive; and (3) tax payments as non-physical national defense and social mutual cooperation. Participants with business experience, access to information, and contact with tax officers or consultants felt more capable of fulfilling their obligations, while entrepreneurs who were still starting out or had limited administrative and digital skills considered taxation complicated. Participants desired education based on real-life examples and step-by-step guides, and tax officers emphasized the importance of education from the start of the business and the use of official channels. These findings suggest that tax education for MSMEs needs to be practical, specific to the type of business, and provided from the early stages of the business, while also linking tax obligations to citizens' contributions to national development. Due to the small sample size, the findings should be carefully translated to other contexts.
Keywords:
tax literacy MSMEs, non-physical national defense tax education reflexive thematic analysis.References
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