When the returns are not returning Well: Any value for our paid taxes?

By Jacob AZAARE (PhD)

Taxation is often described as the lifeblood of every nation because it provides governments with the resources needed to deliver public services and national development. In Ghana, citizens pay various forms of taxes, including income tax, Value Added Tax, road tolls, property rates, import duties, levies on communication and utilities usage.

Ideally, these taxes should translate into quality roads, efficient healthcare, improved education, reliable electricity, clean water systems, and employment opportunities ⁽¹⁾. However, many Ghanaians continue to question whether the taxes they pay are truly benefiting society ⁽²⁾.

Across cities and rural communities alike, people complain about poor infrastructure, corruption, rising unemployment, and inadequate public services. The frustration grows stronger whenever new taxes are introduced without visible improvement in living conditions. As a result, many citizens now ask a difficult but important question; are taxpayers in Ghana receiving enough value for the sacrifices they make through taxation ⁽¹⁰⁾?

One major reason for public dissatisfaction is the persistent problem of poor infrastructure despite years of tax collection. Roads in many parts of Ghana remain riddled with potholes, making transportation difficult and dangerous.

During the rainy season, flooding destroys roads and properties because drainage systems are either absent or poorly maintained. In several communities, citizens still struggle to access clean drinking water and stable electricity despite continuous tax payments.

Public schools in some rural areas operate without adequate classrooms, furniture, or teaching materials. Hospitals are overcrowded, and patients are often asked to purchase medicines and medical supplies privately. These conditions create the impression that public funds are either insufficiently managed or diverted away from development priorities ^{(3, 4)}.

When citizens witness deteriorating infrastructure while taxes continue to increase, confidence in government institutions weakens. Consequently, many people begin to see taxation not as a patriotic duty but as an unfair burden without meaningful returns.

Corruption is another factor that fuels concerns about whether taxes in Ghana are producing value for citizens. Reports of financial mismanagement, inflated contracts, missing state funds, and political favoritism frequently dominate public discourse. When government officials are accused of embezzling public money without facing serious consequences, taxpayers naturally feel betrayed.

Citizens work hard to earn incomes from which taxes are deducted, expecting these funds to support national progress. Instead, they often hear stories about luxurious lifestyles enjoyed by certain public officials while ordinary people struggle with high living costs. Corruption weakens institutions and reduces the resources available for essential public services ⁽³⁾.

Even when development projects are initiated, corruption can lead to poor-quality work and abandoned infrastructure. This situation creates a cycle of distrust between citizens and the state. If taxpayers believe their contributions are being wasted or stolen, they become less willing to comply with tax obligations and less hopeful about national development ⁽⁴⁾.

The issue of unemployment also raises doubts about the effectiveness of tax utilization in Ghana. Many young graduates complete tertiary education only to face years of joblessness or underemployment. Small businesses, which should be the engines of economic growth, often struggle under high operational costs, unstable electricity, and limited government support.

Although taxes are meant to stimulate economic development and create opportunities, many citizens feel excluded from the benefits of the economy. Government initiatives aimed at job creation sometimes fail to reach the majority of unemployed youth or are criticized for political favoritism.

In rural communities, farmers continue to lack adequate storage facilities, good roads, and access to affordable credit ⁽⁵⁾. As a result, productivity remains low despite agriculture being a major sector of the economy. When citizens cannot connect their tax contributions to meaningful economic opportunities, they naturally question whether the state is fulfilling its responsibilities toward the people who finance it.

Healthcare delivery in Ghana presents another area where taxpayers often feel disappointed with government performance. Although the National Health Insurance Scheme was introduced to improve access to healthcare, many hospitals still lack essential equipment, medicines, and trained personnel ⁽⁶⁾.

Patients regularly endure long waiting times and overcrowded conditions in public health facilities. In some cases, individuals covered by health insurance are still required to pay additional fees before receiving treatment. Rural clinics frequently operate with limited resources, forcing residents to travel long distances for medical attention.

Meanwhile, outbreaks of diseases continue to expose weaknesses in the public health system. Considering the taxes citizens pay, many people expect more efficient and accessible healthcare services. Public frustration intensifies whenever funds allocated for healthcare are reportedly mismanaged or delayed. Since health is a basic human need, the inability of the system to consistently deliver quality care reinforces the belief that taxpayers are not receiving sufficient value for their contributions.

Education, which should be a strong pillar of national development, also reflects the mixed outcomes of tax-funded policies in Ghana. While governments have introduced initiatives such as free senior high school education, challenges remain within the educational sector ⁽⁶⁾.

Many schools lack laboratories, libraries, computers, and enough qualified teachers to provide quality instruction. Overcrowded classrooms and inadequate learning materials affect the educational experience of students, especially in deprived areas. Teachers themselves frequently complain about delayed salaries after their first appointment, poor working conditions, and inadequate support from authorities ^{(3, 4)}.

These realities create doubts about whether educational investments are being properly managed. Although some progress has certainly been achieved, many taxpayers believe the quality of education should be significantly better considering the amount of public revenue collected annually. Education remains one of the clearest indicators citizens use to judge governmental accountability and efficiency.

Despite these concerns, it is important to acknowledge that taxation in Ghana has also contributed to certain national achievements. Roads, schools, hospitals, and public institutions across the country have not appeared by accident.

Tax revenue has supported social intervention programs, security services, sanitation projects, and infrastructure development over the years. The introduction of free senior high school education, expansion of health facilities, and digitalization of public services and the ongoing BIG PUSH projects are examples of initiatives partly funded through taxes.

As a result, some regions have experienced improvements in transportation, telecommunications, and electricity access. Moreover, taxes help the government reduce dependence on foreign aid and borrowing, which strengthens national sovereignty.

The challenge, therefore, may not simply be the existence of taxes but rather the efficiency, transparency, and fairness with which public funds are managed ⁽⁷⁾. While citizens are justified in demanding better accountability, it is equally necessary to recognize that taxation remains essential for national development and the functioning of the state.

To improve public confidence in taxation, Ghana must strengthen transparency and accountability in governance ⁽⁷⁾. Citizens need clear evidence showing how tax revenues are collected, allocated, and utilized. Government institutions should regularly publish understandable reports on major projects and expenditures so that taxpayers can monitor national development.

Anti-corruption agencies must also operate independently and ensure that public officials who misuse state funds face serious legal consequences. In addition, development projects should be based on genuine public needs rather than political considerations. Community involvement in budgeting and decision-making can help ensure resources are directed toward priorities that improve people’s lives.

Efficient tax administration is equally important because excessive taxation without visible benefits discourages compliance. If citizens begin to see better roads, improved schools, reliable healthcare, and more employment opportunities, public attitudes toward taxation will gradually change. Accountability and transparency are therefore essential ingredients for restoring trust between the state and taxpayers.

In conclusion, the question of whether taxes in Ghana provide sufficient value does not have a simple answer. On one hand, taxes have supported important national programs and contributed to certain developmental gains. On the other hand, widespread corruption, poor infrastructure, unemployment, inadequate healthcare, and educational challenges continue to frustrate many citizens.

The gap between tax collection and service delivery has created growing skepticism about governmental accountability and effectiveness ^{(9, 10)}. For taxation to feel justified, citizens must see clear, consistent returns in the form of quality infrastructure, reliable healthcare, and improved living conditions ⁽⁸⁾.

Until then, the perception that “the returns are not returning” will persist, challenging both governance and the legitimacy of the tax system itself ⁽¹⁰⁾. Governments must therefore prioritize responsible management of public funds, transparency, and equitable development.

At the same time, citizens should continue demanding accountability while fulfilling their civic responsibilities honestly. A nation can only progress when both leaders and citizens work together in trust and responsibility. Until visible improvements consistently match the sacrifices taxpayers make, the debate about the true value of taxes in Ghana will continue strongly.

Author:

Jacob Azaare (PhD), Management Science and Engineering, Senior Lecturer, Department of Business Computing, School of Computing and Information Sciences, University of Technology and Applied Sciences, Navrongo

Reference:

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