Effect of Excisable Goods Management Systems on Domestic Tax Compliance Among Small and Medium Enterprises in Thika Sub-County

Purpose: Despite the rapid adoption of e-filing in Kenya, the filing system is still unreliable especially at peak period and on voluntary usage which lead to low level of compliance perceived by taxpayer. The aim of the study was to determine the effect of excisable goods management system on domestic taxes compliance among small and medium enterprises in Thika town, Kenya. The study was anchored on the standard economic theory. Methodology: The explanatory research design was employed. The target population was 2052 small and medium enterprises in Thika town with sample size of 334 small and medium enterprises. Primary data was collected using structured questionnaires out of the 334 issued questionnaires, 261 filled the questionnaires and submitted them accordingly, resulting in a 78.1% response rate. The data was analyzed using descriptive and inferential statistics. Results: The study found that excisable goods management system had a positive and significant effect on domestic tax compliance β = 0. 179 and p = 0.004. Conclusion: The government should invest in further enhancing the Excisable Goods Management System to ensure it is user-friendly and accessible to SMEs