Unravelling Tax Compliance Challenges in Nsawam Adoagyiri Municipality, Ghana: An Inquiry Suggesting Socio-Economic, Institutional and Cultural Influences

This study investigates the multifaceted nature of tax compliance challenges within the Nsawam Adoagyiri Municipality in Ghana, focusing on socio-economic, institutional, and cultural factors influencing residents' compliance behaviour. Drawing on Q Methodology, data was collected from 40 participants representing various sectors, including formal and informal businesses, property owners, market traders, transport operators, and tax officials. Participants' viewpoints were analysed using Principal Component Analysis, revealing distinct patterns of shared perspectives on tax compliance. The findings highlight widespread concerns regarding the impact of poor public services, informal employment, distrust in local government, and lack of transparency in tax administration on compliance behaviour. Despite diverse viewpoints, common themes emerged, underscoring the complexity of tax compliance challenges within the municipality. Based on these findings, recommendations are provided to enhance tax compliance and revenue collection efforts, including improvements in taxpayer education, enforcement mechanisms, and institutional transparency. This study contributes to the understanding of tax compliance dynamics in local government settings and provides insights for policymakers and tax administrators to address compliance challenges effectively.