A study by the Ghana Integrity Initiative (GII) – on exploring innovative measures to promote voluntary tax compliance (VTC) – as one of its key findings has the vast majority of respondents, representing 72.6 percent, revealing that they are not satisfied with how tax revenues are being managed or utilised by government.
Their dissatisfaction is premised on the fact that there is a high level of
mismanagement, as some respondents cited single-source procurement, abandoned
government projects, over-invoicing etc. as the basis for their position.
Only 26.4 percent and 1 percent of respondents out of the survey said they were
satisfied (normal utilisation) and very satisfied (prudent/efficient
utilisation), respectively.
The respondents were replying to the question: “Are you satisfied with how tax
revenues are being managed/utilized?”
Unfortunately, 61.2 percent of respondents expressed some distrust in the GRA.
Out of this, 28.4 percent said they do not trust it and 32.8 percent said they
are not sure if they can trust the GRA as a state institution responsible for
tax administration.
These answers, according to the GII, send negative signals which must be
addressed in order to boost trust and confidence in tax collection.
“Trust is a very necessary factor for propelling voluntary tax compliance among
taxpayers, and the GRA must do its best to ensure conviction of trust among all
registered taxpayers,” said GII’s Finance Manager, Benedict Doh.
The study concluded that the GRA must intentionally undertake programmes which
engender public trust and give it a better corporate image.
“Corruption and mismanagement of state resources are key determinants for
non-compliance. Most of the respondents expressed grave concerns about the
current levels of corruption in the country, and are looking forward to
government dealing with the menace promptly,” the study said.
Rising cases of corruption,
mismanagement
A recent analysis by IMANI Africa and the African Centre for Energy Policy
(ACEP) has shown that public boards alone have lost close to GH¢1billion to
procurement irregularities over the last decade, from 2011 to 2021.
Similarly, the latest Auditor-General’s report indicates that total
irregularities in public sector organisations for 2021 stood at GH¢17.48billion.
This is a 36 percent rise constituting GH¢4.62billion from GH¢12.8billion in
2020.
These revelations have, somehow, confirmed the dissatisfaction expressed by
respondent businesses on the alleged high level of mismanagement and corruption
in the survey.
The survey
A sample size of five hundred (500) respondents targetting at least 60 percent
businesses and 40 percent of other identified stakeholders in the tax regime
was used. In all, 503 responses were received by the GII and used for the
analysis.
The research adopted a random sampling approach in giving all the sample
population an equal opportunity to be part of the study.
The study also included an online tool that captured the views of stakeholders
in the value chain: businesses, policymakers, implementers, academics and CSOs
among others.
Additionally, key informant interview (KIIs) were used to collect information
from experts to complement the responses obtained through questionnaires.
Source: B&FT