Assessing the vehicle income tax payment within the informal sector: A Case Study Of Kumasi Metropolis.

Thumbnail Image
July, 2015
Journal Title
Journal ISSN
Volume Title
Taxation plays an important role in economic development by sustaining the existence of the state and financing both social programs and infrastructure investment. However the widespread informal sector posits challenges on transitional economies with domestic revenue mobilization. The key objective of the research was to assess the effectiveness of the Vehicle Income Tax system in widening the tax net and the perception of drivers and car owners’ towards the Vehicle Income Tax. The population consisted of all commercial drivers in Kumasi. The study adopted purposive and convenience sampling in collecting data from respondents. Both primary and secondary data were used with questionnaires as the main instrument used for the collection of primary data. Most of the respondents are of the view that the government does not provide enough information about how they use taxpayers’ money (VIT). Again, a large proportion of taxes are used by the government for meaningless purposes. They see issues of waste and corruption in government to be so high that they do not see the need to pay VIT. The study recommended that the printing of the VIT stickers should be vested in the hands of Ghana Revenue Authority.
A Thesis submitted to KNUST Business School, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Master of Business Administration (Finance Option),