Methodology

In our study, an online survey was preferred to prevent health risks during the pandemic. This surveys aim is to understand whether the tax perception of taxpayers is affected by the pandemic process and if so, in what way.

A total of 291 people responded to the questionnaire. Answers to the questions were first evaluated independently of demographic variables, and then it was deter­mined whether the answers differed significantly according to demographic variables. After determining the difference, it was also analysed.

7.4.1 Challenges Encountered Throughout the Study

In order for the study to have a healthy result, the sampling should have the demo­graphic structure to reflect the population of Turkey. It is also acceptable for this demographic structure to reflect taxpayers in tax-related studies. However, face-to- face surveys to ensure this demographic structure would have created a health risk, during the pandemic period for both the people, who will conduct the survey and the respondents. For this reason, online survey method had to be preferred. Hence, a sample with intense internet access was formed spontaneously. It can be said that this sample unable to fully adapt to the demographic structure of Turkey has created a problematic area in terms of the results of the study.

Although the sample we reach out in our study is above the Turkey average in terms of age, it is also impossible to mention that our sample is completely irrele­vant in terms of tax liability. Although this result is not intended, it is thought that the demographic structure of the sample obtained is in line with the demographic structure of taxpayers.

7.4.2 Findings of the Study and Evaluation of the Results

In this part of the study, relevant analyses were made and interpreted through the data obtained from online questionnaires applied by the participants. Data on the demo­graphic characteristics of the participants are given in Table 7.1. While calculating percentages in all tables, the ten thousandth digit, which is the fourth digit after the comma has been rounded to the third digit after the comma, i.e., the thousandth, in accordance with mathematical rules due to numerical reasons.

Women participants constitute 20.6% of the total participants, while men consti­tute 79.3%; this rate does not reflect Turkey’s demographic structure. Although the gender statistics of taxpayers are not kept, it would not be too misleading to mention that the participants in the study have a gender structure close to the gender of taxpayers, given the labour force participation rates (TUIK 2020).

Another noteworthy demographic data is that 32.6% of the respondents are engaged in a job that has to file an income tax return. Considering the rate based on declaration (GIB 2019) which is lower than 9% in all income taxes, it is observed that the rate of taxpayers who pays tax based on declaration is high in our sample. Due to the high rate of taxpayers directly dealing with tax, it would be possible to say that the study has a sample with a high sensitivity in tax issues.

7.4.3 Evaluation of General Findings and Results

The tables we will evaluate under this section are in a structure to show general findings, independent of demographic variables. In this context, the general part of the study will be evaluated in this section (Table 7.2).

The rate of support for the measures taken by the government is around 21%. This rate decreases to 13% at the point of supporting economic measures. The low rate of support for economic measures can be interpreted as the government’s failure to meet the expectations of the markets. This can also be explained by the higher sensitivity of people towards economic measures. It should not be forgotten that even in the sixteenth century, Machiavelli stated that “people forget losing their fathers more quickly than losing the property they inherited from their fathers” (Machiavelli 1993), expressing that this sensitivity is an issue that administrators should pay attention to.

Table 7.1 Data on demographic characteristics of participants

Marital status

Age group

Educational background

Occupational background

Occupational changes because of the COVID-19 pandemic

Table 7.2 Support rates of the government’s struggle against COVID-19

Do you support the economic precautions taken by the government regarding the COVID-19 pandemic?

Do you find these precautions sufficient?

Now, challenging measures to prevent the epidemic have started to be expressed more all over the world.

Taxpayers are highly aware of both the Special Consumption Tax (SCT) increase and the customs duty increase. The rate of those who are aware of the SCT increase is over 93%, and this rate is only 78% for the customs duty. This can be explained by the fact that tax awareness is higher in a tax which is encountered on a daily basis in life and even imposed on soda, even if it is an indirect tax, compared to the customs duty which is relatively less encountered with (Taylar 2010).

Although support for tax increases is low, there is a significant difference in support between the two taxes. At this point, a relatively higher support, i.e., 15%, to the increase in customs duty which can be explained by the low level of awareness, as well as by the fact that the customs duty is less visible than the SCT in daily life.

Would you give a different answer if there was no COVID-19 pandemic?

Do you support the increase of SCTs?

Would you give a different answer if there was no COVID-19 pandemic?

(continued)

Table 7.3 (continued)

Which taxes would you prefer to increase?

Again, the rate of those who say “I definitely do not support” in the question about supporting these two taxes varies significantly. The rate of those who do not support definitely which is 47% in customs duty increases to 67% in SCT.

The ratio of those who support the government to increase other taxes due to the struggle against the pandemic remains at a seriously low point of 3.5%. Again, the rate of those who state that they will not support the tax increase is over 64%. We think that this can be explained by the high level of the total subjective burden of taxes, as well as by the fact that taxes are collected at high rates that are close to the tax limit.

Within the scope of the questionnaire, the answer to the question of “which taxes would you prefer to increase” with two options, either one or the other, was the direct taxes expressed as income and corporate income tax at a rate of 75%. The rate of those who preferred indirect taxes expressed by SCT and Value Added Tax (VAT) remained at 25%. Thus, instead of taxes imposed on spending, which are likely to generally increase the cost of living, considered unfair in terms of tax justice and difficult to avoid, they prefer direct taxes that are more appropriate to tax justice and have no direct effect on the general cost of living (Table 7.4).

Thirty of those who answered the question, “Do you support the increase in customs duty?” answered yes to the question “Would your answer have changed without the COVID-19 pandemic?”. Understanding whether those who answered yes support customs duty has also gained importance in this context. A total of 10 out of the mentioned 30 people either support or definitely support the tax increase, corresponding to 33%. A total of 10 people among those who say that “my answer would have changed if there was no pandemic” do not support or definitely do no support the tax increase. Conditional support to tax increases in an extraordinary situation such as a pandemic is common, for the reasons explained above, as included in the scientific literature.

Table 7.4 The people who support status of the increase of custom duties will change if there is no COVID-19 pandemic

To what extent do those who answered yes to the question of whether your answer would have changed if there was no COVID-19 pandemic support the increase of customs duties?

Table 7.5 The people whom support status of the increase of SCT will change if there is no COVID-19 pandemic

To what extent do those who answered yes to the question of whether your answer would have changed if there was no COVID-19 pandemic support the increase pf SCTs?

18ofthosewho answered yes to the question, “Do you support the SCT increase?” answered yes the question whether your answer would have changed if there was no COVID-19 Pandemic. Similarly, in the distribution of these answers, those who do not support and those who do not definitely support them are in the majority. We could not explain this, and a distinct result occurred in the literature, as is for the results in customs duty (Table 7.6).

The aim of the 4th group of questions is to understand how the economic and democratic effects of the pandemic are evaluated by the taxpayer. To this end, it was tried to understand, in two groups of questions, how the democracy indicators and economic indicators were perceived by the participants in the survey, and, by asking the same questions for 2008, it was aimed to understand whether the perceptions of these indicators were affected in the medium term or the pandemic was the main factor.

While 94% of the respondents stated that the budget deficit increased during the pandemic period, 90% stated that their purchasing power decreased compared to the pre-pandemic period. When we evaluate these two statements together, taxpayers

Table 7.6 Trust in democratic institutions and economic situation

How has your purchasing power changed compared to 2008?

How has your purchasing power changed compared to before the COVID-19 pandemic?

How do you think the democracy index of Turkey has changed compared to before 2008?

How do you think the democracy index of Turkey has changed compared to the pre-COVID-19 pandemic?

Do you think that the decisions regarding the measures taken to tackle the COVID-19 pandemic are taken with your democratic participation?

who think that public expenditures are made in order to combat the pandemic and that this increases the budget deficit think that these public expenditures do not increase their purchasing power and even do not ensure that their purchasing power remains constant. This can also be read as the citizens think that some measures should be taken to increase their purchasing power affected by the pandemic.

The rate of those who think that the decisions about the pandemic are made with democratic participation is 89%, but those who think that the democracy index of the country has decreased with the pandemic remains only 75%. As a result of reading these two propositions together, it can be concluded that the decrease in democratic participation in processes such as pandemic is reasonable for 14% of the respondents. However, when interpreting the 92% of the answers to the question “How the democracy index has changed compared to pre-2008?” saying “it has deteriorated”, it can be concluded that the democratic participation has remained low for a while, at least for 14% of the participants in the survey.

7.5