Examining rent tax compliance in Sub-Saharan Africa: evidence from La Dade–Kotopon municipal assembly, Accra, Ghana

What the paper says

Purpose Despite rent tax potential to significantly support fiscal activities in sub-Saharan Africa (SSA) countries, not much is known empirically about the extent of its compliance. In Ghana, rent tax (non-) compliance is largely dominated by anecdotal evidence. The study therefore aimed at examining rent tax compliance using evidence from La Dade–Kotopon Municipal Assembly (LaDMA) in Accra, to provide valuable insights to augment ongoing broader discussions about enhancing domestic revenue mobilisation to revive and stabilise Ghana’s economy. Design/methodology/approach An exploratory mixed-methods research design was employed using a direct structured survey of 66 landlords and property managers, and a semi-structured interview with a senior tax official to gather comprehensive insights into rent tax compliance in LaDMA. Descriptive analytical approach was primarily utilised given the complex and understudied nature of rent tax compliance within SSA. Findings The findings generally indicate low compliance with rent tax from both administrative and technical compliance perspectives; Although 45% of respondents claimed awareness of rent tax laws, more than half of these could not correctly identify the applicable tax rate. This level of rent tax compliance in LaDMA is generally occasioned by weak enforcement mechanisms, perceived low penalties for evasion, limited taxpayer awareness, distrust with spending from tax revenues and uncooperative attitudes among landlords despite technological interventions. Research limitations/implications While based on a local case, the findings of this study carry broader implications for countries across SSA and other regions where legislative bottlenecks, administrative inefficiencies, and entrenched non-compliance undermine rent tax mobilisation. Originality/value The results confirm that compliance challenges are not simply technical, but deeply rooted in behavioural, institutional, and governance issues. Addressing them requires an integrated approach that strengthens enforcement frameworks, improves taxpayer awareness, and enhances transparency in how revenues are utilised to build public trust.