Factors Influencing Personal Tax Relief Schemesand Usage Decisions among Personal Income Taxpayers within the Kumasi Metropolis of Ghana
To lessen burdens caused by enforcing tax laws and ensuring equal distribution of same, good tax systems grant individual taxpayers reduction(s) in the taxable base via personal income tax relief schemes (PTRS) for which the Ghanaian tax system is no exception. The usage however depends on the taxpayer’s awareness and willingness. This study therefore sought to predict the factors that are likely to influence the Ghanaian personal income taxpayers (PIT) PTRS usage decisions as available under Act 592 (as amended) in mitigating their tax burdens using a survey research design with sets of structured questionnaires. The results of the study are based on responses from 210 PIT from the Kumasi Metropolis of Ghana which were analysed using binary logistic regression. The results suggest that there are very low levels of awareness and usage of PTRS among Ghanaian PIT from Kumasi Metropolis. The study however identified knowledge, awareness, challenges, and perception as statistically key predictors of the usage decisions among individual PIT from Kumasi Metropolis. Consequently, this paper recommends that Ghana Revenue Authority, social advocators and National Commission on Civic Education among others step up education and awareness creation campaigns on usage of PTRS as a means of mitigating tax burdens so as to encourage self-voluntary tax compliance.