Dynamics Between Technology Adoption and Tax Revenue Generation in Ghana: An Empirical Investigation

Abstract

Economic growth increases a country's taxable capacity, allowing the government to tax a larger proportion of the private sector's resources to fund the provision of public goods and services. As a result, many governments rely on taxation to generate resources to meet their expenditure needs. Nonetheless, there have been few studies on the impact of electronic tax implementation in developing economies such as Ghana. The study explored the fitness of electronic tax adoption in Ghana and evaluate its economic factors, IT Infrastructure and organizational viability impact on tax revenue generation. This study's theoretical foundation is the Fit Viability theory. The study employed a quantitative design. Data was collected through a survey. The study employed a purposive sampling technique to sample 138 staff of various businesses in Accra who file their tax to the Ghana Revenue Authority (GRA). The Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to analyze the effects of task requirements, technology characteristics, economic, IT infrastructure, individual characteristics and organizational support on revenue generation. The study found that fit and viability were significant in determining the adoption of electronic tax systems in Ghana. However, only task characteristics were shown as a significant predictor of Fit in the model. Also, Information Technology Infrastructure was the only factor seen in the study as significant on viability. The findings of this research demonstrate that information infrastructure self-efficacy significantly influences the intention to adopt electronic tax technology. The study recommended the creation of electronic tax filing solutions that provide consumers with a robust, reliable level of security and privacy protection. According to the study, managers should keep in mind that making the electronic tax useful and user-friendly is not enough. Managers must work to increase the number of people who use electronic tax. Managers must also create electronic tax filing options that provide customers with a high level of security and privacy protection.