Abstract

This paper examines the effect of tax revenue determinants on Ghana's tax revenue growth. The results specify significant determinants of tax revenue growth as foreign direct investment (FDI), manufacturing value added, services value added, external debt stocks and government consumption expenditure. The estimated tax revenues were found to be greater than the actual tax revenue figures resulting in tax revenue gaps averaging 10.27% of GDP annually. The study is a premier attempt to adopt econometric techniques to examine the effect of determinants of tax revenue on tax revenue growth. The study contributes to literature by developing a trajectory of tax revenue generation framework. The study provides a justification for the curtailment of the multiplicity of taxes with its inimical effects on tax revenue growth. We posit that to drive tax revenues to ensure the realisation of SDGs, tax policy should focus on significant tax revenue triggering determinants.

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