An Investigation into the Gender Dimensions of Taxation in Ghana

Abstract

Little attention is paid to gender biases in taxation. This chapter fills this gap by addressing three questions: (1) do the personal income tax laws in Ghana ensure formal and substantive equality for women and men (2) who bears the burden of indirect taxation in Ghana and (3) what can be learnt about the gender dimensions of tax burden in Ghana. The analysis finds that there is considerable formal equality in the personal income tax structure. Tax laws do not explicitly differentiate between women and men and tax rates are the same for both sexes. In terms of substantive equality the personal income tax system discriminates against the single-earner households many of which are headed by women. Policy reforms are needed to lessen the burden of taxation on poor households that have more children. Tax reforms should target and reduce the burden of taxes on commodities such as fuel for household use, since such taxes are disproportionately regressive for households in which females are the majority.