An investigation of the impact of personal tax reliefs on tax burden a case study of taxpayers in Yendi

Abstract

This study assesses taxpayers’ awareness, utilization and perceived impact of personal tax reliefs on tax burden, as well as the relationship between awareness and utilization of personal tax reliefs in Yendi. A quantitative research approach, employing a correlational research design, was executed. A population of 260 income taxpayers and a sample of 157 were drawn from three public sector institutions using the cluster sampling technique. An online questionnaire was used to collect primary data, which was analyzed with the help of the Statistical Package for Social Science software using descriptive and correlation analysis. The following conclusions emerged from the findings: The respondents demonstrated a fair level of awareness regarding personal tax relief, showcasing a profound understanding and knowledge of the different dimensions of personal tax relief. However, their engagement in utilizing personal tax reliefs was low, and they generally perceived these reliefs as having a restricted impact on reducing their tax burden. The study further revealed a positive but weak relationship between taxpayers’ awareness of personal tax reliefs and their utilization of the reliefs. It is suggested that variables beyond taxpayers’ awareness may play a significant role in influencing the utilization of personal tax reliefs. In light of these findings, this research highlights the complex dynamics surrounding personal tax reliefs, advocating for further exploration to discern the multifaceted factors that affect their utilization. Such insight is instrumental in the formulation of effective policies and strategies for enhancing the benefit of personal tax reliefs for both taxpayers and tax authorities.