Social norms and consumption tax evasion: unpacking passive consumer participation

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PurposeThe purpose of this study is to explore the social norms influencing consumer participation in consumption tax evasion (CTE) by examining both passive and active roles from a social marketing perspective. The study aims to identify the factors that prompt consumers to engage in or abstain from CTE, with a particular focus on the interplay of descriptive and injunctive norms and perceived consumer effectiveness (PCE).Design/methodology/approachThe study utilizes a scenario-based experimental design involving 306 respondents in India, stratified by demographics and tax compliance attitudes. We used the PROCESS Macro to analyze the data using established scales for measuring descriptive and injunctive norms and PCE.FindingsThe results indicate that descriptive norms significantly increase the intention to engage in CTE, while injunctive norms weaken this relationship. PCE strengthens the moderating effect of injunctive norms. These findings highlight the mechanisms driving passive participation in CTE.Social implicationsThis study underscores the importance of societal norms and individual efficacy beliefs in shaping ethical behaviors such as tax compliance. By understanding these factors, governments can better design social marketing campaigns and public policies that foster a more compliant and ethically aware society.Originality/valueThe originality of this research lies in its examination of both passive and active consumer participation in CTE, a relatively understudied area within tax compliance literature. It extends the discourse on social norms and tax evasion by incorporating the nuanced roles of descriptive and injunctive norms and offers valuable insights for academicians, tax authorities and policymakers interested in behavioral interventions.