Assessing the utilization of tax relief schemes by employees in the public sector

Abstract

The main objective of the study is to assess the utilization of the tax relief schemes by public sector employees in Ghana. Questionnaires were distributed to and responses obtained from one hundred and twenty public sector employees within the health, educational and the local government sector using the random sampling method. The study revealed that 88.3% indicated that they were aware of tax reliefs available to employees who pay tax in Ghana whiles only 11.7% were not aware of the tax relief system in Ghana. The study further revealed that just about 23 out 120 (representing 19.2%) respondents have ever applied for tax reliefs whiles 97 out of 120 (representing 80.8%) have never applied for it. The results also indicated that only 23.3% had ever filed a return, whereas 76.7% of the taxpayers had never filed a return, which a basic requirement for applying for tax reliefs. The study found no statistical association between socio-demographic factors such as gender, highest level of education, marital status, institution, religion, basic monthly salary, and number of children and awareness of tax relief schemes. In conclusion, the study has revealed that most tax payers do not utilize personal tax reliefs’ provisions even though majority of them are aware of the tax relief schemes. It is recommended that public education on filing of tax returns in any form should be intensified, if possible, giving it the same publication as being received by the payment of Income Tax. Also, the Ghana Revenue Authority must also work in collaboration with the Social Welfare and the Physically Challenged Rehabilitation Centers to educate its members on the tax reliefs available for taxpayers in Ghana.