The Ghana Revenue Authority (GRA) has reported a robust performance in its mid-year tax collection surpassing expectations, despite initial challenges in the first quarter of 2024.
Ms Julie Essiam, Commissioner General of GRA, at a recentmedia briefing in Accra made known the Authority’s significant achievements and outlined plans for the remainder of the fiscal year.
According to her, GRA collected GH₵68.49 billion in the first half of 2024, exceeding the mid-year target of GH₵67.9 billion by GH₵138.6 million, marking a 0.2 percent increase. “This accomplishment represents a notable 37.6 percent growth compared to the same period last year, reflecting the Authority’s resilience and strategic adjustments,” she said.
She also told the journalists that her outfit’s performance in June was particularly outstanding, surpassing the monthly target by an impressive 21.2 percent. She attributed this success to a 90-day strategic plan implemented by GRA leadership to steer the Authority back on track, following a sluggish first quarter.
One of the major problems confronting most of the Sub-Saharan African countries is their failure to collect adequate taxes to meet the ever growing demands of their people. Whilst the developed countries are able to collect taxes and even get surplus, which they give to us in the form of grants and loans, Africa is unable to do same.
We cannot, however, blame our leaders for this shortfall because of the high unemployment rate in Africa. Whilst majority of the people in the advanced countries are working and can, therefore, be taxed, the situation is not the same in our part of the world. Majority of the youth in Africa, though have the requisite skills, are still at home doing virtually nothing because there are no avenues for them to be employed.
This is what is making it impossible for our governments to collect the needed taxes to spur development. The Chronicle is, however, happy that despite this setback, the GRA has been able to exceed its target for the first half of the year. AsMs Julie Essiam told the journalists, the revenue collecting agency has been able to achieve this feat because of the innovative strategies they have adopted.
The development also tells a story that our national economy is gradually bouncing back after Covid-19 and other economic factors that have slowed down growth in the past three years or so. But whilst praising Ms Essiam and her team for the good job done, they must also admit that there are more rooms for improvement.
In our opinion, tax collection policies have been focused mainly on the formal sectors of the economy, whilst that of the informal sector has been relegated to the background. Despite the challenge we have as a nation when it comes to employment, there are thousands of workers working in the informal sector.
We can mention masons, carpenters, painters and electricians – just to mention a few – who are earning decent incomes, but the focus is not on them to pay taxes. Someone earning GHS3, 000 in the formal sector cannot compare himselfor herselfto these artisans, yet whilst the former is being taxed, the latter has been left off the hook.
The Chronicle is, therefore, advising the GRA to come out with a strategy that would rope in all these informal sector workers into the tax bracket. We believe that if this is done, a lot more taxes will be collected to support the development of the country. The tax collection agency has done a yeoman’s job, but there is still more room for improvement and we urge them to work harder.
