Tax Revenue Generation and the Economic Development of

The objective of this paper is to explore the impact of tax revenue on the economic development of Ghana and the Gross Domestic Product which measures economic development was used as a proxy. The paper also examines tax reforms and the effect of automation on tax revenue performance, sources of revenue leakages and measures to improve the collection of taxes. The Least Square Multiple Regression was used to explore the relationship between GDP (the dependent variable) and Tax Revenue (Independent Variable) for the period 1999-2014. Tax Revenue is made up of Direct Taxes, Indirect Taxes and taxes collected by the Customs Division. This has been on the increase but more is need to reduce the deficit of Ghana. A simple hypothesis was formulated in the null form which states that there is no significant relationship between Tax Revenue and Ghana’s GDP. The Regression result indicated a very positive and significant relationship and hence a positive impact of Tax Revenue on economic development of Ghana