Assessing the operation of value added tax system in the Kumasi Metropolis (1998-2008)

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The purpose of this dissertation was to assess the operation of the Value Added Tax system in the Kumasi Metropolis. To achieve the said purpose, ten questionnaires and Ninety interview guides were designed and administered personally to collate views from the respondents. Out of the hundred sent out, eighty responded. The target population was the VAT field officers from Kumasi and all VAT registered persons within the metropolis the data was analysed by the use of tabulation and simple percentages. Majority of the respondents were of the view that VAT has been able to bring fairness in the tax system, uniformity in the tax administration, widened the tax net within the metropolis but majority were of the view that there were many challenges faxing the operation of the system which include: Misunderstanding of the operation of the system by the registered person’s, difficulty in calculation, perceived corruption of the tax officials, and lack of proper monitoring. Some of the recommendations suggested to solve the problems raised include intensification of the education of the general public, on the importance of tax in nation building, explanation of the operational mechanism of the VAT to the tax registered persons, proper monitoring system, weeding out of corrupt tax official and giving of tax rebates to faithful tax registered persons who properly and correctly honour their tax obligations, to enhance the operation of the system.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirements for the award of the Degree of Master of Business Administration, 2008