Personal Tax Relief Schemes: Awareness and Usage among Personal Income Taxpayers within Kumasi Metropolis of Ghana
Journal Title: Asian Journal of Economics, Business and Accounting - Year 2017, Vol 3, Issue 1
Abstract
To lessen burdens caused by enforcement of tax laws and to ensure equal distribution of tax burdens, good tax systems grant individual personal income taxpayers (PIT) reduction(s) in their taxable income through personal income tax reliefs schemes (PTRS). The Ghanaian tax system is no exception to this. The usage however depends on the taxpayer’s awareness and willingness to adopt. This study therefore sought to ascertain the PTRS awareness and usage level and the factors that influence the PTRS usage in mitigating tax burdens among individual Ghanaian PIT within the Kumasi Metropolis. Also, this study sought to impale research interest in PTRS usage considering its effects on government tax revenue and disposable household and national incomes. The study used a survey research design with sets of structured questionnaires. The results of the study are based on responses from 210 PIT from Kumasi Metropolis of Ghana analyzed using descriptive statistics and binary logistic regression. The results suggest that while there is fair level of PTRS awareness, PTRS usage remains very low among Ghanaian PIT from Kumasi Metropolis. The study also identified knowledge, awareness, challenges, and perception as statistically key factors that influence PTRS usage in mitigating tax burdens among individual PIT from Kumasi Metropolis. Consequently, this paper recommends that Ghana Revenue Authority and/or tax policy makers, social advocators and National Commission on Civic Education among others pay attention to these factors so as to step up interest in PTRS usage as means of mitigating tax burdens if voluntary tax compliance is to be encouraged.
Authors and Affiliations
F. Y. Gbadago
Keywords
Related Articles
- EP ID EP338519
- DOI 10.9734/AJEBA/2017/32107
- Views 135
- Downloads 0
The Impact of Inventory Management on Profitability: A Case of Distribution and Wholesale Firms in Ghana
The study аѕѕеѕѕed thе impаct of invеntory mаnаgеmеnt on thе profitаbility of wholеѕаlе аnd diѕtribution firmѕ in the Kumasi Metropolis, Ghаnа. The study adоpted a descriptive approach as the researсh design and quant...
Stochastic Dominance, Dynamic Programming and Bayes Filtering: Applications in NPV and NPVaR
Applications of three computational methods in the evaluation of NPV and NPV at risk (NPVaR) of a project are studied. These methods are stochastic dominance, dynamic programming and Bayes filtering. First, the definitio...
Market Value Maximization, After-Tax Profit and the Cost of Capital of Entrepreneurial Firms
This paper examines the implications of various costs of capital on the market value and profit of entrepreneurial firms. Specifically, four costs were identified as follows: cost of debt (kd), cost of equity (ke), cost...
Role of Microfinance Banks Credit in the Development of Small and Medium Enterprises in Lokoja, Kogi State, Nigeria
The study employed descriptive research design to investigate the role of Microfinance Banks credits in the development of Small and Medium Enterprises in Lokoja, Kogi State, Nigeria. Descriptive statistics and Chi-squar...
Accounting Ethics and Audit Quality in Nigeria
The study examined the effects of accounting ethics on audit quality in Nigeria. Although no method yet has been found to guarantee the optimum quality level for the financial information users, and implicitly the qualit...