Determinants of Tax Revenue Mobilization in Ghana: An Empirical Trend Analysis from 2010 – 2019

Abstract

The study utilizes trend analysis to examine the determinants of tax revenue mobilization in Ghana from 2010 to 2019; the empirical results of a linear regression model and time series data analysis demonstrated that macroeconomic stability, trade openness, and share of agricultural GDP are significant predictors of tax revenue mobilization in Ghana. Tax collections have been influenced by GDP per capita and policy reforms. The descriptive and empirical analyses revealed that significant tax incentives exemptions, slow structural transformation, poor economic governance, weak administrative systems, and organizational capacities are challenges to increasing tax revenue. The country can reach its full potential by addressing these problems and increasing tax revenue. Furthermore, results from the study indicated that revising free zone policies and developing ways to tax the informal sector would boost tax revenue mobilization.