Tax compliance research conducted by the Ghana Integrity Initiative (GII) indicates that companies are reluctant to pay taxes voluntarily due to rising operating costs and perceived corruption in the Ghanaian economy.
According to the local chapter of Transparency International, the Ghana Revenue Authority will need to do more to get people to file their returns.
GII Chief Financial Officer Benedict Doh told reporters that domestic revenue mobilization is at serious risk if the situation continues.
“Something that prevails in our findings is that companies believe there is an increase in corruption cases, especially from many reports published by organizations and that there is so much mismanagement in the Another critical concern was the foreign exchange issue which aggravated the cost of doing business in the country.”
“Many respondents also believe that the exchange rate has caused so much to their businesses and driven up the cost of borrowing. They are also of the view that some companies borrow to fund their projects, so economic challenges make it difficult to make a profit and report tax,” he added.
The findings were presented at a national tax policy forum by the GII and Australian Aid under the theme: ‘Exploring innovative measures to promote voluntary tax compliance’.
According to the research, voluntary tax compliance has decreased significantly as well as trust in tax officials.
Benedict Doh added that businesses are feeling the economic pain and are unwilling to pay taxes voluntarily.