Tax Knowledge and Voluntary Compliance Among Market Traders in Onitsha, Anambra State

This study assesses the relationship between tax knowledge and voluntary compliance among market traders operating in Onitsha Main Market, Anambra State, one of the largest commercial markets in West Africa. The informal trading sector represents a substantial untaxed segment of Nigeria's economy, and understanding the drivers of voluntary compliance is essential for revenue authorities seeking sustainable revenue expansion. A descriptive survey design is adopted, with data collected from 250 traders selected through systematic random sampling. The questionnaire measures tax knowledge across three dimensions: awareness of tax types, understanding of filing obligations, and knowledge of penalties for non-compliance. Compliance behaviour is assessed through self-reported filing and payment history. Secondary data from the Anambra State Internal Revenue Service supplement primary findings. Analysis uses descriptive statistics and Pearson correlation. The study anticipates a positive and statistically significant relationship between tax knowledge and voluntary compliance, consistent with findings from similar studies in other Sub-Saharan African economies. It further finds that traders with formal educational attainment demonstrate significantly higher compliance rates. Recommendations include introducing targeted financial literacy and tax education workshops within market associations, leveraging the Onitsha Main Market traders' union as a compliance intermediary, and simplifying tax filing processes through mobile platforms. The research contributes to grassroots tax policy discussions in the South East zone. Keywords: tax knowledge, voluntary compliance, market traders, Onitsha, informal sector.