Low trust in government weakens tax compliance and the state’s capacity to mobilise revenue. Based on a survey conducted among a selected group of citizens and businesses on their perceptions of taxation, findings indicate that Bogotá’s residents and firms largely recognise taxes as essential for development, yet remain concerned about fairness, transparency, and corruption. While most reject tax evasion, limited confidence in how revenues are managed reduces willingness to pay. Survey results indicate that residents and businesses view taxes as a contribution to the city’s progress rather than a burden, yet dissatisfaction with public services and perceptions of inequity undermine tax morale. Strengthening trust through transparent resource management, better service delivery, and more effective communication with taxpayers is essential. Expanding tax education, simplifying procedures, and enhancing civic engagement can further foster voluntary compliance and reinforce the social contract that supports sustainable urban development.
Reconnecting Bogotá
Abstract
Low public trust in government institutions directly affects how taxes are collected, undermining both compliance and the state’s ability to raise sufficient revenue (Torgler, 2005[1]; OECD, 2019[2]). Trust is a core element of the fiscal contract: when citizens believe that taxes are levied and well spent, they are more likely to contribute (OECD et al., 2024[3]). Conversely, low trust leads to reduced tax morale – people’s intrinsic motivation to pay taxes – which weakens overall compliance and limits the resources available to fund essential services and drive production transformation. Understanding tax morale is therefore key to improving tax collection.
Even though a large portion of citizens in Colombia condemn tax evasion, the country ranks among the highest in the LAC region for the share of people who often or always justify it (Figure 3.1). In 2024, 62% of respondents in Colombia said they would never cheat on their taxes. However, 8.1% stated they would often or always justify tax evasion – matching only Mexico and exceeding the LAC regional average of 6.7% (OECD et al., 2024[3]; IFAC/ACCA, 2024[4]).
Respondents to the question “Do you justify cheating on taxes if you have the chance?”
Source: Authors’ elaboration based on (IFAC/ACCA, 2024[4]).
While a large share of citizens in Colombia view taxation and the fiscal pact positively, few believe that tax revenues are properly invested, indicating room to strengthen tax morale. Survey data suggest broad theoretical support for the fiscal contract in Colombia, with 43% of respondents viewing their tax payments as a way to support their community. However, 29% express disagreement – mirroring similar trends across the region. When asked whether public services represent a fair return for what they pay in taxes, only 22.3% of Colombians agreed, while a significant 58.5% disagreed (IFAC/ACCA, 2024[4]). This gap between the idea of contributing to the community and the perception of receiving inadequate public services reveals a fracture in the fiscal contract. Bridging this divide and strengthening tax morale requires that governments prioritise improving and communicating the quality and efficiency of public spending.
Bogotá has undertaken efforts to strengthen tax morale and foster a culture of fiscal responsibility among citizens. The city has sought to rebuild the fiscal relationship between citizens and the local state by demonstrating transparent financial management and encouraging public participation. Past measures have included rationalising spending, capitalising the city’s energy company, Grupo de Energía de Bogotá, to protect social investment, and involving the City Council in fiscal decision making to ensure openness in tax reforms. A landmark reform in 1993 introduced a self-assessed property valuation system, replacing the official cadastral valuation. This not only incentivised compliance through exemptions but also broadened the tax base and increased average collections per property. These reforms reflected a broader strategy to build a reciprocal relationship between taxpayers and the local state, demonstrating that when citizens perceive tax systems as fair and transparent, tax morale – and thus revenue mobilisation – can improve significantly.
A perception-based survey among individuals and companies in Bogotá can offer valuable insights into current levels of trust. Tax morale can be assessed through such surveys, which often explore whether individuals view tax evasion as justifiable. Socio-demographic factors such as age, gender, education, income, and religious affiliation are known to influence tax morale, with older, more educated, or more religious individuals typically showing a greater willingness to comply. Additionally, perceptions of fairness and equity help determine how legitimate the tax system is perceived to be. Governments must take these perceptions into account, as they shape the context in which any successful reform of tax policy and administration must take place (IFAC/ACCA, 2024[4]).
In Bogotá, strengthening the tax system requires more than sound legal and institutional design, it also depends on citizens’ trust, their willingness to comply, and their active engagement. Well‑crafted tax laws and regulations are fundamental to improving efficiency and fairness, reducing distortions, and broadening the tax base. Yet even the most technically robust framework will not achieve its objectives if taxpayers do not believe in the system or choose not to comply. A fundamental pillar for reducing informality in any city or developing country is ensuring that people understand both the reasons why they pay taxes and the benefits, collective and individual, that arise from doing so. For Bogotá, building a sustainable and effective tax system therefore hinges on fostering a culture of voluntary contribution, where citizens actively engage, recognise the value of their contributions, and trust that these are managed transparently and fairly.
This survey analysis represents a first effort to better understand citizens’ and businesses’ perceptions of taxation in Bogotá, including their willingness to comply and contribute. It is based on a survey conducted in the city, which gathered the views of selected individuals and businesses on their perceptions of taxation (See Annex 3.A). A total of 133 respondents participated in the study, including 51 adults and 82 businesses. The business sample focused on micro, small and medium-sized enterprises, while the individual respondents represented a broad range of income backgrounds. Response rates differed across questions, and certain items were left unanswered by some participants. While the sample is not statistically representative, the results provide useful insights into prevailing perceptions of taxation, highlight potential challenges, and contribute to fostering a constructive debate on the topic. These findings also underscore the importance of developing more comprehensive and robust data to better inform policy design and public discussion in the future.
An essential component of analysing tax culture is to understand how citizens and businesses perceive the very act of paying taxes, beyond the immediate local context or the performance of the authorities. This perspective provides insights into the underlying beliefs about the role of taxation in society and the extent to which people view it as a legitimate and necessary institution. Assessing these more fundamental attitudes is important to determine whether citizens recognise taxation not only as a practical obligation but also as a theoretical cornerstone of the social contract.
Are taxes fundamental for sustainable development and for financing public services?
Citizens and businesses alike recognise taxation as a key driver of sustainable development and public service delivery in Bogotá. Among citizens, nearly half perceive taxes as either essential (17%) or important (31%), while a further 21% acknowledge some interaction with development outcomes (Figure 3.2, Panel A). Businesses display an even stronger consensus: more than half of them agree (42%) or strongly agree (8%) that taxes play a central role in fostering sustainable development. These perceptions highlight a broad recognition across society that taxation is not only a fiscal instrument, but also a crucial lever for achieving collective development objectives. In addition, a large majority of businesses acknowledge the necessity of taxation for the provision of quality public goods and services (Figure 3.2, Panel B). More than eight in ten firms either agree (62%) or strongly agree (20%) that the payment of taxes is essential to ensure adequate education, transport, infrastructure, security, health and recreation, with only a small share remaining neutral (8%) or expressing disagreement (10%).
Note: In Panel A individuals responded to the question “To what extent do you consider that the payment of district taxes is related to sustainable development?. For businesses, the statement was “Please indicate the extent to which you agree or disagree with the following statements about taxation. The payment of taxes is related to sustainable development”. Response categories have been harmonised across citizens and businesses. For citizens, very positive perception combines “essential” and positive perception corresponds to “important”, while neutral is “some interaction”, negative perception includes “little interaction”, and very negative perception corresponds to “no link”. For businesses, very positive perception refers to “strongly agree”, positive perception to “agree”, neutral to “neutral”, negative perception to “disagree”, and very negative perception to “strongly disagree”. For Panel B, businesses had to indicate whether they "strongly disagree", "disagree", are "neutral", "agree" or "strongly agree" with the following statement: "Paying taxes is necessary in order to have quality education, transportation, infrastructure, security, healthcare, and recreation".
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Are taxes a contribution or a cost for citizens and businesses?
Perceptions among both citizens and businesses also point to a shared view that taxes are not merely a private cost, but rather a contribution to the development of Bogotá (Figure 3.3). A clear majority of citizens (62%) and businesses (55%) agree or strongly agree that paying taxes should be understood as an investment in the city’s progress rather than as an individual burden. For both citizens and businesses, the shares expressing disagreement are in the minority (28% for citizens, 21% for businesses).
Note: Both businesses and citizens were asked the following question: “Please indicate the extent to which you agree or disagree with the following statements about district taxation: I consider the payment of taxes to be a contribution to Bogotá rather than a cost to me”.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Although many citizens and businesses in Bogotá recognise the importance of taxation and understand the reasons for its collection, they do not necessarily agree with how it is implemented or how the revenues are allocated. While there is broad acknowledgement that taxes are essential to finance public goods and services, perceptions diverge when it comes to the fairness, efficiency and transparency of the system. This gap between theoretical support for taxation and concerns over its application highlights the need to strengthen trust in tax administration and improve communication on the use of public resources.
Are district taxes spent for public welfare?
Citizens in Bogotá express scepticism over whether district taxes are spent for the public good (Figure 3.4). Although almost half of respondents agree (41%) or strongly agree (5%) that tax revenues are used in the interest of society, close to 40% either disagree (24%) or strongly disagree (16%). A further 14% remain neutral. These results indicate that, although many citizens recognise the positive role of taxation, a significant proportion question how revenues are managed and whether they effectively translate into public benefits.
Note: Citizens were asked to what extent they agreed or disagreed with the statement: “District taxes are spent for the public good”. Results show the share of respondents selecting each option.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Perceptions of whether the public infrastructure received in Bogotá represents a fair return for taxes paid are largely negative among both businesses and citizens (Figure 3.5). More than half of citizens (43% disagree and 24% strongly disagree) and businesses (20% disagree and 33% strongly disagree) express dissatisfaction with the public infrastructure they receive relative to their tax contributions. Only around one quarter of the citizens, and solely one fifth of the businesses, agree or strongly agree that they obtain a fair return. While a significant share of businesses (27%) and citizens (8%) remain neutral.
Note: Both businesses and individuals were asked to what extent they agreed or disagreed with the statement: “I feel that the education, transport, infrastructure, security, healthcare and recreation I receive in Bogotá are a fair return for the taxes I pay” (original Spanish: “Siento que la educación, transporte, infraestructura, seguridad, salud y recreación que recibo en Bogotá son un retorno justo por los impuestos que pago”). Results show the share of respondents selecting each option
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Citizens in Bogotá express greater satisfaction with the services provided by the district government than with those delivered by the national government (Figure 3.6). While nearly eight in ten respondents are dissatisfied or very dissatisfied with services at the national level (78%), this share falls to around six in ten at the district level (63%). Moreover, satisfaction is somewhat higher with the district government, with 12% of citizens reporting being satisfied or very satisfied, compared to only 5% for the national government. These results suggest that, although dissatisfaction remains prevalent, local service provision is perceived more positively than services delivered by the national authorities.
Note: Respondents were asked: “How satisfied or dissatisfied are you with the education, transport, infrastructure, security, healthcare and recreation provided by the national government and by the district government?” Response options: Very dissatisfied; Dissatisfied; Neutral; Satisfied; Very satisfied. Results show the share of respondents selecting each option for each level of government.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Are taxes enough to fund public services?
Citizen perceptions of whether different groups pay enough district taxes are mixed (Figure 3.7). For middle- or low-income individuals, just over half of respondents believe they contribute sufficiently (28% agree and 23% strongly agree), while nearly three in ten think they do not (18% disagree and 10% strongly disagree). Local businesses are seen somewhat more positively: almost half of citizens consider their contributions adequate (36% agree and 13% strongly agree). By contrast, views are more critical for high-income individuals and multinational companies. For high-income individuals, 44% think they contribute enough (31% agree and 13% strongly agree), but one third (18% disagree and 15% strongly disagree) believe they do not. Multinational businesses face the greatest skepticism: almost half of citizens (21% disagree and 23% strongly disagree) feel they do not pay enough, while only 31% (21% agree and 10% strongly agree) believe their contributions are sufficient.
Note: Respondents were asked the following question: “Do you consider that the amount of district taxes currently paid by individuals and businesses is sufficient to contribute to the public services provided by the district?”
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Concerns about the level of taxation also emerge as a factor discouraging compliance among businesses (Figure 3.8). Almost four in ten respondents identify the tax rate itself as an extremely or very relevant obstacle to paying taxes. In addition, approximately six in ten consider that increases in taxes do not translate into tangible benefits for their business, with 32% seeing this as extremely relevant and 25% as very relevant. By comparison, fewer businesses view being disproportionately taxed relative to others as a central concern, with the largest share (43%) rating it as only moderately relevant. These findings suggest that high tax levels, coupled with a limited perception of benefits, are seen by many firms as key barriers to compliance.
Note: Respondents were asked to what extent they consider the following statements relevant: “The increase in taxes does not translate into benefits for the business”; “The company is disproportionately taxed compared to other businesses”; and “The tax rate is an obstacle to tax compliance”.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Is the tax system perceived as fair?
Citizen perceptions of the equity of district taxes in Bogotá point to widespread doubts about their fairness (Figure 3.9). More than four in ten respondents either disagree (19%) or strongly disagree (22%) that taxes are equitable and take into account the capacity to pay. A further 30% remain neutral, suggesting considerable uncertainty among citizens. Only a minority agree (24%) or strongly agree (5%) with the statement. These results indicate that many citizens do not believe the tax system adequately reflects differences in taxpayers’ ability to pay.
Note: Respondents were asked the following question: “Do you believe that the taxes collected in Bogotá are equitable, as they take into account the ability to pay?”
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Dissatisfaction with the fiscal system can influence how citizens and businesses behave towards taxation. In response to perceived shortcomings in fairness, transparency, efficiency or corruption, individuals may choose to avoid paying taxes, alter their accounting practices, or adjust their investment decisions. Such behaviours, while varying in intensity and formality, reflect the broader risk that weak trust in the fiscal system can undermine compliance and distort economic choices. Understanding these potential reactions is therefore essential for designing policies that strengthen confidence in taxation and encourage constructive engagement with the system.
Citizens adjust their taxpaying behaviour in response to the state of the fiscal pact
Despite expressing dissatisfaction with several aspects of the fiscal system, most citizens in Bogotá do not consider tax evasion to be acceptable (Figure 3.10). The vast majority (86%) state that it is not justified to cheat on taxes, with only a small minority viewing it as partially (5%) or totally (8%) justified. Among businesses, this rejection is even stronger, with 93% reporting that tax evasion is not justified. These results suggest that, although concerns about fairness, transparency and efficiency persist, the principle of compliance remains widely recognised and supported.
Note: The citizen and business surveys asked a similar question on whether tax evasion is justified, but with different response scales. The citizen survey offered three options (“Never”, “Occasionally”, “Always”), while the business survey used a five-point Likert scale from “Strongly disagree” to “Strongly agree”. To facilitate comparison, both sets of responses were reclassified into three categories: “Not justified”, “Partially justified” and “Totally justified”. For businesses, “Strongly disagree” and “Disagree” were grouped as “Not justified”; “Neutral” as “Partially justified”; and “Agree” and “Strongly agree” as “Totally justified”.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Most businesses and citizens in Bogotá reject the idea that firms should alter their accounts to reduce district taxes (Figure 3.11). Half of surveyed businesses (50%) strongly disagree with such practices, while citizens are most critical of multinational companies, with 49% strongly disagreeing that they have the right to do so. At the same time, the results show that tolerance for these practices is not absent. Among citizens, close to 30% consider that for low or medium incomes it is acceptable, while around two in ten respondents believe it is justified for high-income individuals or local firms. These findings suggest that, although the majority oppose altering accounts to reduce taxes, a notable minority in both groups continue to view it as permissible.
Note: Both surveys explored perceptions of whether accounting practices can be modified to reduce the amount of taxes paid, but applied the question differently. The business survey referred directly to firms’ right to alter their accounting, while the citizen survey asked respondents whether they agreed or disagreed that specific actors (low/medium-income individuals, high-income individuals, local firms, multinational firms) could do so. Results are presented side by side using the common five-point scale from “Strongly disagree” to “Strongly agree”.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Most businesses firmly reject the idea that tax evasion or informality can be justified, even in contexts of high corruption or heavy tax burdens (Figure 3.12). Around seven in ten businesses strongly disagree with such practices, whether framed as evasion (67%) or informality (68%). An additional one in five disagree, reinforcing the view that these behaviours are not socially acceptable. Nonetheless, a small minority does express tolerance: 7% strongly agree that informality is justified if corruption is high, and 5% consider it justified if taxes are too high. These results confirm that, although opposition is overwhelming, a persistent share of businesses remain willing to legitimise evasion or informality under adverse conditions.
Note: Respondents were asked the extent to which they agree with the following statements: (i) It is acceptable to evade some taxes if corruption in the tax system is high; (ii) It is acceptable not to register a business or to remain informal if corruption in the tax system is high; (iii) It is acceptable to evade taxes if tax rates are unreasonably high; (iv) It is acceptable not to register a business or to remain informal if business tax rates are unreasonably high.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Corruption emerges as a critical determinant of citizens’ attitudes towards district taxation (Figure 3.13). An overwhelming majority of respondents (86%) consider corruption to be an important factor shaping their views, while only a small minority regard it as a minor (3%) or non-existent (10%) influence. These findings underline the extent to which perceptions of corruption undermine trust in the tax system and highlight the importance of strengthening integrity and transparency to foster citizen confidence and compliance.
Note: Respondents were asked whether corruption is an important, minor, or non-existent factor influencing their attitude towards district taxes. Results reflect the percentage of business representatives who selected each option.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Investment implications of the current state of the fiscal pact
Among the different factors shaping the business environment, those directly linked to fiscal authorities are seen as particularly important (Figure 3.14). Approximately half of businesses (51%) rate the tax environment as very important, with a further 28% considering it important. The cost of complying with regulations is also a key concern, judged important by 33% and very important by 40% of respondents. Beyond taxation, many firms emphasise the role of public infrastructure in supporting investment decisions. More than half view the quality of education, health and infrastructure as important or very important (68%), and almost half identify digital infrastructure as very important (44%). These results suggest that, alongside broader macroeconomic and security conditions, the effectiveness of the tax system and the quality of public services provided by fiscal authorities are central to shaping business confidence.
Note: Respondents were asked to assess the importance of different factors for their company’s investment and location decisions. Results reflect the percentage of business representatives who rated each factor as not important, slightly important, neutral, important, or very important.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Tax authorities have many instruments to reconnect with citizens and strengthen their willingness to engage in the tax system. Beyond traditional enforcement, measures such as expanding tax education, simplifying procedures, and improving transparency can help build trust. Digital tools also provide important opportunities to reduce compliance costs, improve communication, and enhance service quality. Survey results highlight that citizens see the role of the tax administration in multiple ways (Figure 3.15) nearly half (48%) perceive it as a mix of enforcement and taxpayer support, while smaller shares view it mainly as an enforcement body (28%) or as a service to honest taxpayers (17%). These findings suggest that citizens expect the authority not only to enforce compliance, but also to provide clear guidance and accessible services. By combining these approaches, fiscal authorities can foster a culture of voluntary compliance and reinforce the perception that taxation contributes to collective well-being.
Note: Respondents answered the question, “How do you primarily perceive the role of the District Secretariat of Finance?” (original Spanish: “¿Cómo percibe principalmente el papel de la Secretaría Distrital de Hacienda?”).
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Level of openness, trustworthiness and simplicity
Citizen perceptions indicate that many taxpayers do not feel their voices are heard by the district government (Figure 3.16). Almost six in ten respondents either disagree (32%) or strongly disagree (27%) that their requests as taxpayers are taken into account. A further 24% remain neutral, while only a small minority agree (14%) or strongly agree (3%). These results suggest a significant gap between citizens and the administration, underlining the need for stronger channels of dialogue, responsiveness, and participation to build trust in the tax system.
Note: Respondents were asked whether they agreed with the statement: “I believe that my requests as a taxpayer are heard by the district government.”
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Governments could further improve taxpayer engagement by simplifying payment procedures, facilitating access to information and ensuring clearer communication of tax rules (Figure 3.17). Survey results show that most citizens find property and vehicle taxes relatively straightforward to pay, with 69% and 75% respectively agreeing or strongly agreeing. Similarly, a majority consider it easy to find information (76% for property tax and 76% for vehicle tax. Perceptions are somewhat less positive when it comes to understanding tax rules and official communications: 57% agree or strongly agree for property tax, and 60% for vehicle tax, while around one quarter express disagreement. These findings suggest that while progress has been made in ease of payment and access to information, further efforts are needed to enhance clarity and comprehension in tax communication.
Note: Respondents were asked to what extent they agreed with three statements regarding property and vehicle taxes: (i) paying the tax is an easy and efficient process, (ii) it is easy to find information when needed, and (iii) the rules, bills, forms, and communications from the District Secretariat of Finance are easy to understand.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
The Bogotá government could improve business compliance by focusing on the simplification of district-level taxes. Survey results show that companies view the payment of the Industry and Commerce Tax, property tax and vehicle tax relatively positively, with half of respondents (51%, 51% and 50% respectively) agreeing or strongly agreeing that procedures are easy and efficient. By contrast, perceptions are more critical for the Urban Delineation Tax, with half of businesses (50%) remaining neutral, slightly more than one quarter (28%) considering the process straightforward, while only fewer than two in ten agree or strongly agree in perceiving it as efficient and ease (Figure 3.18). These findings suggest that, while most district taxes are seen as relatively manageable, targeted efforts are needed to simplify and modernise less familiar levies such as the delineation tax, which currently generates greater uncertainty among firms.
Note: Respondents were asked whether they agreed or disagreed that paying and processing procedures for different taxes are easy and efficient. Results reflect the percentage of business representatives who expressed each level of agreement.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Tax education
Tax education is a powerful tool for Bogotá to strengthen citizens’ engagement with the fiscal system. Yet, survey results show that very few respondents received such education during their school years (Figure 3.19). Only 3% recall receiving tax education they found useful, and another 3% report receiving it but not considering it valuable. By contrast, more than six in ten citizens (62%) state that they did not receive any tax education and would have found it valuable, while 21% are unsure or do not remember. A further 10% believe they did not receive tax education and that it would not have been useful.
Note: Respondents were asked: “Did you receive education on the importance of taxes during your school years?”. The options reflect both whether they received such education and how they assessed its usefulness.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Knowledge of district taxes can also be improved. Most citizens in Bogotá feel very familiar with income tax, property tax, vehicle tax, and VAT, with over 55% being “very familiar” – particularly income tax (61.8%) and both property and vehicle taxes (64.7%). However, familiarity drops significantly for the ICA and the public lighting tax, where only 35.3% and 26.5%, respectively, reported being “very familiar,” and a notable share of responses fell into the “not familiar” or “slightly familiar” categories (38.2% for ICA and 47.1% for public lighting). This suggests a need for targeted information and training efforts at the district level specifically on ICA and a future public lighting tax.
There is a growing need in Bogotá to reconnect with citizens in order to strengthen their engagement with the tax system. The district government has several instruments at its disposal to achieve this, going beyond enforcement. Priorities include improving the quality of public spending, simplifying the tax system, expanding tax education, increasing transparency, and reducing corruption. Equally important are measures that create more opportunities for dialogue with taxpayers and provide clear incentives for compliance. Together, these actions can help build trust, foster a culture of shared responsibility, and reinforce the perception that taxation contributes to collective well-being.
Survey results confirm the urgency of this agenda (Figure 3.20). Nearly half of citizens (48%) state that they are not willing to pay more district taxes to support the Sustainable Development Goals, while only 20% express a clear willingness to do so. By contrast, there is stronger support for taxing environmentally harmful goods and services, with 65% in favour and only 17% opposed. These findings suggest that citizens remain cautious about broader tax increases but are more receptive to measures that link taxation directly to fairness, sustainability, and tangible outcomes. Strengthening trust through transparency, efficiency, and participation could therefore play a decisive role in increasing willingness to engage with the fiscal system.
Note: Respondents were asked two questions: (i) whether they would be willing to pay more district taxes to support the Sustainable Development Goals (SDGs), and (ii) whether they agree with applying district taxes to products or services with negative environmental impacts. Results reflect the percentage of citizens selecting each option.
Source: Survey on citizens’ and enterprises’ perceptions of Bogotá’s tax system.
Tax administrations can play a pivotal role in advancing this agenda through measures within their direct control. Simplifying procedures and reducing administrative burdens can make compliance easier and more transparent for taxpayers. Collaborating with educational institutions – and where relevant, with the national government – to implement tax education programmes can foster early awareness of the importance of taxation and civic responsibility. Likewise, strengthening communication channels, enhancing data transparency, and using digital tools to inform citizens about how taxes are collected and spent can reinforce confidence in the system.
At the same time, broader efforts that go beyond the tax administration are also essential. Improvements in the quality of public services, stronger anti-corruption initiatives, and greater accountability across all levels of government are crucial to sustain citizen trust. Tax administrations have an important role to play in these cross-cutting efforts, working in close co-ordination with other local and national institutions to ensure that fiscal policy becomes a shared endeavour grounded in transparency, fairness, and mutual responsibility.
References
[4] IFAC/ACCA (2024), Public Trust in Tax 2024 – Latin America and Beyond, OECD Publishing, Paris, https://doi.org/10.1787/52ce48d5-en.
[2] OECD (2019), Tax Morale: What Drives People and Businesses to Pay Tax?, OECD Publishing, Paris, https://doi.org/10.1787/f3d8ea10-en.
[3] OECD et al. (2024), Latin American Economic Outlook 2024: Financing Sustainable Development, OECD Publishing, Paris, https://doi.org/10.1787/c437947f-en.
[1] Torgler, B. (2005), “Tax morale and direct democracy”, European Journal of Political Economy, Vol. Vol. 21/2, pp. pp. 525-531, https://doi.org/10.1016/j.ejpoleco.2004.08.002.
Citizen questionnaire
1. In which locality of Bogotá do you reside?
[List of Bogotá localities]
I live outside Bogotá
2. How do you identify yourself?
a. Man
b. Woman
c. Non-binary person (neither man nor woman)
d. Prefer to identify in another way – Which?
3. What is your age?
4. What is the highest level of education you have completed?
Primary
High school
Technical
Technologist
University
Postgraduate (Master’s, Doctorate)
None
Don’t know / No response
5. What was the household's total annual income in 2024, including both labour and non-labour income?
[Blank space for response]
6. In which economic activity are you engaged?
[List of economic sectors]
7. Do you agree or disagree that the following individuals and companies modify their accounting to reduce the amount of district taxes they pay?
[Table with options: Strongly disagree to Strongly agree for different groups]
People with middle or low incomes
People with high incomes
Local businesses
Multinational companies
8. Do you consider the amount of district taxes paid by the following individuals and companies adequate to maintain the city’s finances and ensure the provision of services such as education, transport, infrastructure, security, health, and recreation?
[Table with options: Strongly disagree to Strongly agree for different groups]
People with middle or low incomes
People with high incomes
Local businesses
Multinational companies
9. Do you agree that the following individuals and companies should pay a reasonable amount of district taxes?
[Table with options: Strongly disagree to Strongly agree for different groups]
People with middle or low incomes
People with high incomes
Local businesses
Multinational companies
10. Please indicate the degree to which you agree or disagree with the following statements about district taxes:
District taxes are spent for public welfare.
I feel that the education, transportation, infrastructure, security, healthcare, and recreation I receive in Bogotá are a fair return for the taxes I pay.
I consider paying taxes a contribution to Bogotá rather than a cost to me.
I believe that my requests as a taxpayer are heard by the District government.
I believe taxes collected in Bogotá are fair and consider the ability to pay.
11. Do you think it is justified to evade taxes if you have the opportunity?
Always
Occasionally
Never
12. Do you think paying taxes is mainly a matter of morality and fairness or mainly a matter of laws and regulations?
Mainly morality and fairness
Mainly laws and regulations
An equal mix of both
Does not know/does not answer
13. How reliable do you consider the following sources of information about district taxes?
[Table with options: Very unreliable to Very reliable]
Media reports
Social media
Tax law experts
Industry leaders
Business leaders
Accounting experts
Politicians
District Secretariat of Finance
Non-governmental organisations (NGOs)
Family/Friends
14. Indicate which level of government each tax corresponds to:
[List of taxes with options: National, Departmental, District]
VAT (Value Added Tax)
Income Tax
Industry and Commerce Tax (ICA)
Property Tax
Vehicle Tax
Public Lighting Tax
15. Based on your education, experience, and information, how familiar are you with the following taxes?
[List of taxes with options: Very familiar, Somewhat familiar, Not familiar, Never heard of it]
VAT (Value Added Tax)
Income Tax
Industry and Commerce Tax (ICA)
Property Tax
Vehicle Tax
Public Lighting Tax
16. To what extent do you agree or disagree with the following statements when dealing with Bogotá’s property tax?
[Table with options: Strongly disagree to Strongly agree for different statements]
In general, knowing the amount and paying my property tax is an easy and efficient process.
Effective digital or online services are provided.
It is generally easy to find information about the property tax when I need to fulfill my obligation.
In general, it is easy to understand the rules regarding the property tax, as well as the invoices, forms, letters, and other communications from the District Secretariat of Finance.
The District Secretariat of Finance treats taxpayers with respect and dignity.
In general, it is a fair process.
Requests are resolved in a reasonable manner.
17. To what extent do you agree or disagree with the following statements when dealing with vehicle tax?
[Table with options: Strongly disagree to Strongly agree for different statements]
In general, knowing the amount and paying the vehicle tax is an easy and efficient process.
Effective digital or online services are provided.
It is generally easy to find information about the vehicle tax when I need to fulfill my obligation.
In general, it is easy to understand the rules regarding the vehicle tax, as well as the invoices, forms, letters, and other communications from the District Secretariat of Finance.
In general, it is a fair process.
Requests are resolved in a reasonable manner.
18. Did you receive education about the importance of taxes during your school years?
Yes, and I found it useful
Yes, but I didn’t find it valuable
Not sure / Don’t remember
No, but I think it would have been valuable
No, and I don’t think it would have been useful
19. How do you mainly perceive the role of the District Secretariat of Finance?
Mainly as an enforcement agency
Mainly as a service supporting honest taxpayers
A mix of both
Does not know/does not answer
20. To what extent do you consider district tax payments related to sustainable development?
Essential
Important
Some interaction
Little interaction
No connection at all
21. Would you be willing to pay more district taxes to support sustainable development goals?
A significant amount more
A small amount more
No additional taxes
22. Would you be willing to pay district taxes aimed at environmental protection and sustainability, taxing products or services with negative environmental impact?
Definitely yes
Partially yes
Not sure
No
23. To what extent does corruption influence your attitude toward district taxes?
It is a major factor
It is a minor factor
It is not a factor
24. Please explain and/or provide any additional comments about your interactions with the District Treasury Department:
[Blank space for response]
Business questionnaire
1. In which area of the company do you work?
Finance Office
Tax Department
Part of Management
Legal Office
Not applicable
Other area of the company (Other) Please specify which: [blank space]
2. Which locality of Bogotá is your business located in?
[List of Bogotá localities]
I live outside Bogotá
3. In which economic activity is the company engaged?
[List of economic sectors]
4. How many direct jobs does the company generate?
[Blank space]
5. What are the company's annual operating revenues in 2024 (calculated in Legal Monthly Minimum Wages - SMMLV)?
[Blank space]
6. How much trust do you have in the following?
(Table with options: Very much, A lot, Somewhat, Little, None)
National Government
District Government
7. Do you think corruption is widespread in the following?
(Table with options: Very much, A lot, Somewhat, Little, None)
National Government
District Government
8. The amount of taxes is:
(Scale: Very low to Very high)
National Government (Income tax, VAT, Financial Transactions Tax)
District Government (Industry and Commerce Tax, Property Tax, Vehicle Tax)
9. Do the practices of competitors in the informal sector represent a limitation for the company?
Yes, a very serious limitation
Yes, an important limitation
Yes, but not a significant limitation
No, it does not represent a limitation
10. Please indicate the degree to which you agree or disagree with the following statements about taxation:
(Scale: Strongly disagree to Strongly agree)
I consider paying taxes a contribution to Bogotá rather than a cost to me.
Paying taxes is related to sustainable development.
Paying taxes is necessary to have quality education, transportation, infrastructure, security, health, and recreation.
Taxes are invested for public welfare.
I feel that the services I receive are a fair return for the taxes I pay.
Companies have the right to modify their accounting to reduce the amount of taxes paid.
It is justified to cheat on taxes if given the opportunity.
11. Are you satisfied or dissatisfied with the education, transportation, infrastructure, security, health, and recreation provided by:
(Scale: Very dissatisfied to Very satisfied)
National Government
District Government
12. Please evaluate the importance of each of the following factors that discourage your company from paying taxes:
(Scale: Extremely relevant to Not relevant)
The company is not included in government tax policy procedures or discussions.
Tax increases do not translate into business benefits.
The company is disproportionately taxed compared to others.
The tax rate is a barrier to compliance.
Tax administration is a barrier.
13. Do you agree or disagree with the following statements:
(Scale: Strongly disagree to Strongly agree)
It is acceptable to evade some taxes if the tax system is highly corrupt.
It is acceptable to remain informal if the tax system is highly corrupt.
It is acceptable to evade taxes if the tax level is unreasonably high.
It is acceptable to remain informal if taxes on businesses are unreasonably high.
14. Do you agree or disagree that it is easy and efficient to pay and process the following taxes:
(Scale: Strongly disagree to Strongly agree)
Corporate Income Tax
Value Added Tax (VAT)
Industry and Commerce Tax (with ICA withholding)
Property Tax
Vehicle Tax
Urban Delineation Tax
15. How easy is it to find information to pay the following taxes?
(Scale: Very difficult to Very easy)
Income and complementary taxes
VAT
Industry and Commerce Tax
Property tax
Vehicle tax
Urban Delineation Tax
16. For these taxes, do you consider the rate to be:
(Scale: Very high to Very low)
Income and Complementary Taxes
VAT
Industry and Commerce Tax
Property Tax
Vehicle Tax
Urban Delineation Tax
17. Based on your experience, please evaluate the importance of each of the following factors for your company’s investment and location decisions:
(Scale: Very important to Not important)
Political certainty
Corruption
Current and expected macroeconomic conditions
General tax environment
Labour costs
Large and/or sophisticated local customer base
Ease of trade with neighbouring regions and countries
Security/crime risk
Exchange rate risk
Cost of regulatory compliance
Proximity to other parts of the business, suppliers, and/or competitors
Efficient financial markets
Availability of highly skilled labour
Efficient transport links with neighbouring regions
Quality of district education, health, and infrastructure systems
Availability and quality of digital infrastructure
Presence of local or regional natural resources
Other (please specify)
18. Please evaluate the importance of each of the following tax-related factors for your company’s investment and location decisions:
(Scale: Very important to Not important)
Tax burden on profits
Uncertainty about national taxes
Tax burden on wages
Uncertainty about effective wage tax rate
Tax burden on consumption
Tax burden from district taxes
Uncertainty about district tax burden
Tax incentives
Other (please specify)
19. To what extent do you consider it appropriate for the district government to promote tax incentives?
Very inadequate
Inadequate
Neutral
Adequate
Very adequate
20. Please explain and/or provide any additional comments regarding your interactions with the District Secretariat of Finance.
[Blank space for response]