The Role of Cognitive Dissonance in Predicting Tax Compliance among Madurese Ethnic People

Abstract

This study examines the role of cognitive dissonance in predicting tax compliance among Madurese. Cognitive dissonance, as a state of psychological discomfort resulting from the conflict between an individual's attitudes, religiosity, and emotions with their behavior, is hypothesized to influence Madurese taxpayers' decisions to comply or not comply with tax obligations. This study will explore how Madurese taxpayers experience cognitive dissonance related to taxes, the triggering factors, and the strategies they use to reduce the dissonance, which ultimately affects their level of tax compliance. The phenomenological study was conducted through structured interviews with Madurese figures. The results obtained show that the Madurese ethnic group has the intention to comply with taxes because it is motivated by their environment, knowledge, and understanding of the importance of paying taxes. Intellectual intelligence factors and compliance hierarchy (Bhepa’, Bhebu’, ghuru, ratoh) can play an important role in forming a positive attitude towards the intention to comply with taxes. Spiritual intelligence also supports the intention to comply with taxes because it is seen as an obligation that must be fulfilled as a good citizen. Regarding emotional intelligence, the Madurese ethnic group has the concept of "teretan", which treats others as brothers if they demonstrate loyalty, trust, and a sense of fairness in social relationships. However, this can become a brotherhood if there is a sense of injustice, excessive exploitation by the tax authorities of taxpayers, or corruption in government, which triggers negative emotions and disappointment, leading to reactions that lead to tax non-compliance.