Abstract:
Government of both developed and developing nations all over the world, in this 21st century attempts to widen the scope, modify or restructure and introduce new tax system in order to raise enough revenue for the purpose of raising the image, attainment of higher living standard and reduce excessive inequalities of wealth of the people in their prospective countries of which Ghana is no exception.
In order to be able to properly collect taxes from the citizens and residents of Ghana, the government must educate the masses about the need for the taxes. The average person must be made to understand that the government cannot develop the country and undertake all the projects the citizens’ demand without money. For example, Ghanaians complain that the roads are bad, the schools, hospitals, and market places are also in bad condition, inadequate teachers, etc. These services and infrastructure improvements, etc could not be undertaken without money in the form of taxes from the individuals. We cannot expect only the civil servants and a few others in the country to pay taxes. Many self employed people in Ghana pay little or no taxes. Yet, they all demand services, one way or the other from the government.
Description:
Every tax system is geared at raising or improving the much needed revenue for good governance. To achieve this, the system should be such as to promote good relations and understanding between the tax payer and the tax administration as well as ensure efficiency in the system.
There is a setback in the tax system, such as tax evasion, tax avoidance and administration, if not rectified. It shall gradually get worse.Looking at developing countries like Ghana, they depend much on foreign grants or aids, for that matter they cannot develop its developmental projects. Every government needs revenue to run its country and provide basic amenities, infrastructure which are needed foreconomic growth and development.
