THE EFFECTS OF MOTIVATION ON REVENUE MOBILISATION IN KUMASI METROPOLITAN ASSEMBLY

Abstract

The rates of revenue mobilization by the Metropolitan, Municipal and District Assemblies have declined over the years, constraining most Metropolitan, Municipal and District Assemblies to pursue developmental projects in their various jurisdictions. Extant literature shows that, staff of the assemblies are not well motivated especially the revenue collectors; which has contributed to low revenue mobilization. This study assessed the impact of motivation on revenue mobilization of Kumasi Metropolitan Assembly by specifically looking at the impact of non-financial motivational packages on revenue mobilization, impact of financial motivational packages on revenue mobilization and challenges hindering revenue mobilization of Kumasi Metropolitan Assembly. The study employed survey design and utilized ordinary least square regression and Kendall‟s coefficient of concordance to achieve the three specific objectives. The study reveals that there is significant positive impact of non-financial motivational packages on revenue mobilization where the impact is higher than financial motivational packages. Also, it was revealed that, there is significant positive impact of financial motivational packages on revenue mobilization. The researcher noticed that the composite effect of financial and non-financial motivational packages is huge and actually more significant than the standalone motivational packages. The challenges faced by the assembly in mobilizing revenue are lack of linkage between the tax payment and the provision of services to taxpayers, poor tracking of economic activities, lack of education on tax responsibility, poor record keeping with lack of linkage between the tax payment and services being the topmost problem. The study recommends a combination of financial and non-financial motivational packages to motivate revenue collectors of the Kumasi Metropolitan Assembly.