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Nuhu Salisu (CA)
Economists, Tax, and Finance experts know that taxes are the lifeblood of any nation, funding infrastructure, healthcare, and education, among other essential services. Yet, there has been persistent low tax compliance in Ghana, particularly among individuals and micro, Small, and Medium Enterprises (MSMEs), who often evade taxes due to the complexity of tax laws, distrust, or lack of awareness. Young professionals entering the workforce usually view tax deductions as an unwelcome surprise, reacting with confusion or resistance.
The question that comes to mind is, Why? To answer this question, one must examine our educational curriculum, especially at the pre-tertiary level, where the minds and characters of our young future leaders are formed.
A cursory review of the current educational curriculum of the pre-tertiary schools reveals a gaping fundamental neglect of a key civic responsibility of citizens—the why and how of taxation. We missed an excellent opportunity to imbue a sense of ownership of our national development in these young ones.
Instructively, Article 41(j) of the 1992 Constitution dealing with The Duties of a Citizen makes it abundantly clear that “The exercise and enjoyment of rights and freedoms is inseparable from the performance of duties and obligations, and accordingly, it shall be the duty of every citizen — to declare his income honestly to the appropriate and lawful agencies and to satisfy all tax obligations.” (Emphasis provided)
Taxation is as much a civic duty as voting, yet while schools teach the importance of elections, they often remain silent on fiscal responsibility. The result? A generation that perceives taxes as a punitive “loss” rather than a collective investment in national development. Many graduates enter the job market unaware that income tax is a legal obligation, let alone its role in national development.
This ignorance breeds resentment in the youth, especially first-time income earners. When the first pay cheque arrives with deductions, shock follows not only because of the amount but also because the concept itself feels foreign.
The Role of The Accountant: The Unheralded and Overburdened Middleman
The Ghana Revenue Authority (GRA) mandates tax collection but indirectly delegates a critical aspect of tax compliance education to an unlikely group: corporate accountants. These professionals face a dual burden: They must enforce compliance while explaining complex tax laws to sceptical employees and other taxpayers (sometimes unlettered).
In discharging this duty, many accountants feel overwhelmed with comments from the “tax-illiterate” employees who sometimes regard them as traitors working for GRA, not the employer.” Worse, their efforts go unrecognised by the GRA, which may or can penalise them (per the provisions of the Income Tax Act, 2015 (Act 896) and the Revenue Administration Act, 2016 (Act 915) for non-compliance but offers no incentives for their patient advocacy. This misaligned responsibility creates friction, turning Accountants into reluctant tax evangelists, caught between an impersonal system and disillusioned taxpayers.
“Why Should I Pay Tax?”
In my personal experience as an accountant, this question, “Why should I pay tax?” has been one of the most difficult ones for me to explain.
While it may be reasonable to ask such questions from “an illiterate taxpayer,” it is unfortunate and irritating to hear a university graduate ask questions such as, “What has GRA done for me to warrant this deduction?” or “What is the government doing with all the taxes we pay?” Such questions reflect a profound misunderstanding of taxation’s purpose.
Without prior tax education, even the educated view taxes as arbitrary, not as contributions to roads, schools, hospitals, and other infrastructural development, not to mention the salaries and other payroll costs of the many government employees—doctors, nurses, teachers, and employees in government institutions.
The accountant’s role, therefore, morphs into that of a scapegoat with employees directing their frustration at the messenger, straining workplace trust. While Accountants mostly spend hours justifying deductions, they only get labelled as ‘GRA’s agents.’ Given the role and burden imposed on this tax compliance middleman (the Corporate Accountant), it will not be out of place to have a more formalized GRA-Accountant Partnership that recognizes accountants as allies, offer rewards for high compliance rates and free Continuing Professional Development (CPD) courses to update the skills of underperforming accountants.
Compulsory Tax Education: A Civic Vaccine for a population plagued by Tax Ignorance
Tax education should not just be about laws. It should be about cultivating pride in contributing to Ghana’s growth. It should be a deliberate effort to transform taxpayers from passive bystanders into active stakeholders.
The classroom is where this revolution begins, and that should not be optional, as it has the potential to cure the tax-ignorance pandemic in a threefold solution:
1. Enhanced Compliance: Informed citizens are more likely to comply willingly, reducing enforcement costs.
2. Increased Revenue: A culture of compliance boosts the government’s income for funding public services.
3. Empowered Citizenship: Understanding taxation fosters accountability, both of citizens to the state, and the state to citizens.
The way forward?
The choice is between perpetuating a cycle of ignorance and resistance or embracing tax education as a tool for civic empowerment, improved tax compliance and increased revenue for national development.
The GRA, the Ministry of Education and the Ghana Education Service (GES) must take up the challenge by introducing compulsory short courses targeted at every senior high school and tertiary student. The content must also be simplified and focused on the essentials: types of taxes, their uses, and compliance basics. As is often said – Little Drops of Taxes Make a Mighty Nation. Thus, Every tax Cedi Counts for a Better Future.
The writer, Nuhu Salisu, is a chartered accountant.
