Title: PERCEIVED FAIRNESS OF TAX INCENTIVES AND ITS EFFECT ON TAX ATTITUDES AMONG GIG WORKERS IN SOUTH-WEST NIGERIA

Authors: Abdulrasheed Taiwo Abdullahi, Prof. Mubaraq Sanni, Dr. Mustapha Abdulrasaq, Dr. Salaudeen Ibrahim, Dr. Abdul-Hakeem Shuaib and YinusaAdeshina Rafiu

Abstract: The rapid growth of the gig economy has redefined labor markets, with freelance broadcasters emerging as significant contributors to Nigeria’s informal digital sector. However, tax compliance remains low among this group due to irregular earnings, limited awareness, and digital barriers. This study investigates how perceptions of tax incentive fairness influence tax compliance attitudes among gig workers in South-West Nigeria, focusing on freelance broadcasters and examining digital literacy as a moderating factor. Drawing from Rational Choice Theory and the Diffusion of Innovations Theory, the study adopts a quantitative research design, targeting 384 respondents comprising Internal Revenue Service (IRS) staff and freelance media professionals. Data was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) indicates that perceived fairness exerts a significant positive influence on tax attitudes (β = 0.42, p < 0.001), and that digital literacy significantly moderates this effect (β = 0.19, p = 0.037). Results reveal that perceived fairness of tax incentives, such as flat-rate schemes and micro-deductions significantly affects compliance behavior. Furthermore, digital literacy positively moderates this relationship by improving understanding and usage of e-tax platforms. Normality and collinearity tests validated the dataset, while predictive relevance analysis showed the model explained 48.2% of the variance in tax compliance. The study recommends that tax authorities develop digital-friendly, gig-specific incentives, and integrate identity-linked benefits into formal tax platforms. Such strategies can improve compliance, build trust, and drive fiscal inclusion in Nigeria’s expanding gig economy.

Keywords: Tax Incentives, Digital Literacy, Gig Workers, Tax Compliance.

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