INSIGHTS INTO GREEN TAX AMONGST SMALL MEDIUM ENTERPRISE OWNERS IN SOUTH AFRICA: A QUALITATIVE STUDY

Objective: This study sought to explore how the owners of small medium enterprises in South Africa, understood green tax and the factors influencing tax compliance.   Methods: Using a qualitative research design, data was obtained from a sample of 12 owners of small medium enterprises, who voluntarily consented to participate in the study. Data was collected using semi-structured interviews, using a virtual platform due to COVID-19 regulations. Thematic analysis was used to analyse the data.   Results: Five broad themes emerged from this inquiry which revolved on how business owners understand green tax, factors affecting green tax compliance and the strategies to ensure green tax compliance amongst small medium enterprises.    Conclusion: The study found that participants were in favour of green taxes which reflected a commitment to environmental protection. However, concerns regarding how the government utilised green taxes to ensure environmental protection emerged and  consumers were found to be reluctant to pay higher premiums for green products, which  affected overall tax compliance.   Research implications: Greater education regarding the salience and value of green taxes amongst the owners of small medium enterprises is important. More research related to how to ensure green tax compliance and the role small medium enterprises play in green tax compliance will strengthen compliance and enable environmental sustainability.   Originality/value: The study contributes to understanding the reasons behind a lack of compliance with regards to green taxes amongst small medium enterprises.