This study examines the impact of digital service tax policies on taxpayer compliance in Ghana. Utilizing a simple random sampling method, data was collected from 1,420 respondents representing diverse demographics, educational backgrounds, and tax payment experiences. The findings reveal that digital service taxes, including the E-levy and gaming tax, have significantly influenced taxpayer behavior. A substantial proportion of respondents reported reduced voluntary tax compliance due to increased financial burdens, while others acknowledged the necessity of taxation for economic development. The study also highlights concerns regarding financial inclusion, particularly for low-income individuals who rely on electronic transactions. Additionally, findings suggest that amendments to digital tax policies, such as adjusting rates and simplifying compliance processes, could enhance taxpayer adherence. Policymakers are encouraged to consider progressive taxation models, improve public awareness, and integrate technology-driven tax collection mechanisms to enhance compliance. The politics of abolishing the E-levy and Gaming Tax by the two major political parties in the 2024 general elections (NDC and NPP) and the aftermath ought to be based on scientific grounds. Hence, the study sought to investigate the real impact of these DSTs on tax compliance in Ghana.
Rakibu et al. (Sat,) studied this question.
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