A study on the challenges faced by the domestic tax revenue division of GRA in collecting VAT within the Kumasi Metropolis

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July, 2015
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For any country to achieve its developmental goals it would have to domestically generate its own revenue through usual taxes and this was the main reason for the introduction of VAT in Ghana to improve revenue collection. However the GRA which is charge of revenue mobilization just like other revenue institutions in developing countries have faced challenges in their operations. This study therefore sought to determine the various challenges faced by D.T.R.D’s of GRA in VAT collection and administration. The non- probability sampling technique specifically the purposive sampling technique was used to select 100 tax officials within the Kumasi Metropolis which were used as case study. Based on this, questionnaires were used to gather relevant data from respondents. Research findings indicated that, the D.T.R.D’s faced challenges such as improper records and bookkeeping by taxpayers, lack of tax education, high rate of VAT, unprofessional attitude of some tax officials, inadequate staffs to collect tax, high illiteracy level among taxpayers, lack of infrastructure and logistics, technological constraints as well as improper filing of returns. Also, results showed that training for tax officials are insufficient and that both tax education and tax system would have to be improved to make revenue mobilization efficient. The study therefore recommends that, the GRA should undertake recruitment and adequate training for tax official, massive tax education, provision of improved infrastructure and logistics as well as implementing tougher punishments for taxpayers as these would improve revenue mobilization and boost national growth and development.
A Thesis Submitted to the Department Of Accounting and Finance, Kwame Nkrumah University of Science and Technology in Partial Fulfilment of the Requirement Of Master of Business Administration (Finance Option),