Effects of multiplicity of taxes on functional obligation of hoteliers in tourism industry in ghana
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Date
2023
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KNUST
Abstract
Multiple taxation continues to be a bane to the operations of hotels operating in Ghana especially those in Accra. The main objective of the study was to examine the effect of multiple taxation in the financial obligations of hotels operating in Accra. The study used a cross-sectional quantitative descriptive research design, and a total of 120 staff from the various hotels in Accra were purposively selected. Responses from the participants were elicited using a well-structured selfadministered questionnaire by leveraging on Google Form. The analyses of the data were performed using the JASP software by running descriptive statistics and mean score analysis of Likert scales. The results of the study showed that hotels pay more than 12 different taxes and levies in addition to about 3 to 5 other financial obligations to external bodies. One main relevance of paying taxes was the perceived contribution to national revenue. Any other relevance or benefits of paying taxes and levies were rated very low by the participants. The adverse effect of multiple taxation included increased rates charged for services, negative effect on profit of hotels, hindrance to hotel growth, and disruption of hotel operations by tax agents who visit the facility. Hotels use more that 22 percent of their revenue to pay taxes and levies. It was recommended that government should view hotels as the last resort in the generation of internally generated revenue and rather focus on other related industries. There is also the need for a uniform or single tax for hotels to ensure compliance and effectiveness. Government is advised to provide tax incentives to hotels to motivate them to voluntarily pay taxes.
Description
A thesis submitted to the department of accounting and finance, school of business, knust in partial fulfillment of the requirements for the degree of master of science in accounting and finance