This indicator reflects the proportion of businesses that anticipate facing expectations of gift-giving or informal payments during interactions with tax authorities. Measured as a percentage, it captures the perceptions of firms regarding the prevalence of corruption or informal practices within bureaucratic environments. A high percentage suggests a systemic issue where businesses may feel compelled to engage in unethical behavior to facilitate their compliance or obtain favorable treatment, undermining trust in public institutions. Conversely, a lower percentage could indicate a healthier business environment with more transparent and accountable governance. Understanding this indicator can help policymakers identify the extent of corruption pressures and develop targeted interventions to enhance regulatory integrity and promote fair business practices.
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