The Ghana Revenue Authority (GRA) was established in 2009 as a merger of the three revenue agencies, that is, the Customs, Excise and Preventive Service (CEPS), the Internal Revenue Service (IRS), the Value Added Tax Service (VATS) and the Revenue Agencies Governing Board (RAGB), in accordance with the Ghana Revenue Authority Act 2009 (Act 791).
Its core mandate is to ensure maximum compliance with all relevant tax laws in order to ensure sustainable revenue stream for the government, trade facilitation and a controlled and safe flow of goods across the country’s borders.
The Central government relies heavily on the GRA for revenue, among other things, to pay salaries to public sector workers, as well as building public infrastructure among others. Thus, the local mobilisation of revenue by the GRA is key to the administration of the country.
According to the GRA, revenue performance from January to September 2022, as compared to projected targets is as follows: total tax revenue of GH¢51,580.17m was collected for the period as against a target of GH¢52,046.78m. It fell short of the target by GH¢466.61m (i.e. 0.9%).
The performance represents a nominal growth rate of 29.0% over the same period, compared to last year’s collection of 26%. Domestic revenue grew nominally by 28.6%. Customs revenue grew nominally by 29.8%.
The GRA is reporting that at the end of the third quarter, it did not meet its tax revenue target. But, considering the difficulties economies across the world are experiencing, it would only be appropriate that the GRA be commended for the efforts they are making to mobilise revenue.
Sometime last year, the Minister for Finance informed Ghanaians that a paltry two million of the 30.8 million population of Ghana pay tax, a figure which represents less than 10% of the population.
This situation, coupled with the private international bond market closing its doors on Ghana, demands that government leaves no stone unturned in revenue generation in the country.
It is, therefore, worth commending some smart measures of domestic mobilization of revenue, especially those that do not add to the burden of the already overloaded taxpayer.
That is why we support the move by the GRA to track tax compliance at the Lands Commission and Driver and Vehicle Licensing Authority (DVLA).
Yesterday, The Chronicle carried a story in which the Commissioner-General of the Ghana Revenue Authority (GRA), Rev. Dr. Ammishaddai Owusu-Amoah, revealed that tax compliance would soon be the yardstick for land and vehicle registration in the country.
He explained that the ability of individuals to register their property with the Land Commission and Driver and Vehicle Licensing Authority (DVLA) would be dependent on their tax compliance.
According to him, a proposal had been tabled and waiting for approval from the Finance Ministry and Parliament. He said the Land Commission or DVLA would track an applicant’s tax compliance using their Ghana Card, which would be a requirement for registration.
He, therefore, advised the public to file their annual tax returns to prevent any eventuality or denial. He informed editors and senior practitioners of the media fraternity that the move was to ensure compliance and enhance tax mobilisation in the country.
We believe that this is a good step taken by the GRA to ensure that every potential taxpayer will not have an escape route.
However, we would like to urge the GRA to extend this initiative to other state agencies that they deem appropriate. Tax compliance involves being aware of and observing the tax laws and requirements being administered by the Ghana Revenue Authority.
Low tax compliance by taxpayers affects the ability of the government to raise the needed revenue for development. It is, therefore, incumbent on all stakeholders to put their shoulders to the wheel to help raise the tax compliance level in the country.
