Small business owners' attitude towards tax stamp: A case study of taxpayers in Sekondi

Abstract

This study was undertaken to examine the attitude of small business owners towards the Tax Stamp System in Sekondi in the Western Region of Ghana. The study assessed the level of knowledge of the nuances of the Tax Stamp as well as their level of compliance. The study also investigated the problems in the payment and collection of the Tax Stamp. Using a descriptive survey method, 184 respondents in the informal sector in designated areas of Sekondi were conveniently selected for the study. They included persons such as shop owners, dress makers and hair dressers. Questionnaires were used to collect data from respondents. The main findings of the study indicate a general highlevel awareness of the Tax Stamp among the respondents. It was also found that compliance to taxation among the informal sector was quite high contrary to the perception that they are untaxed. Again, it was found that logistical constraints, lack of training and corruption still remained the main challenges to tax collection in the study area. In view of this it was recommended that adequate logistics should be provided to aid the effectiveness of tax collection in the informal sector.