Tax Breaks: the way to Position Ghana
Broaden taxation net to help government to
self-finance interventional projects and sustain it for the benefit of the
country and the future generation. Addressing Chief Executive Officers of
Hotels, civil society organizations, CEPs and GRA officials, Pre-Budget Tax
Consultative Meeting at Tamale, Mr. Daniel Nuer, Head of Tax Policy Unit of the
Ministry of Finance encouraged Ghanaians to adopt regular payment and filling
of tax returns. Mr. Nuer in a presentation disclosed that, governments will not
rely on international aid to finance developmental projects if the taxation net
is expanded to include other potential tax contributors rather than the few the
country is depending on. He lamented on how some firms are exempted from paying
TAX despite the huge profits these firms make. Comparing tax to Gross Domestic
Product ratio of Ghana to other countries, Mr. Nuer said, the current taxation policies
set by the Commissioner General will aid successive governments have accurate
tax amounts generated from tax payers to facilitate development and reduce the
dependency on foreign aids. He emphasized on the interests that the country
will gain if we are able to finance some developmental projects adding that, over
the past several years, revenue mobilization in this country has not kept pace
with the ever-growing demands of citizens for development projects and better
services from government. According to Mr. Nuer, annual revenues however have not been able to keep up
with these demands creating a deficit which has to be bridged through
government borrowing or through support from donor partners.
Mr. Lawrence Hotsonyame, an official from
Ghana Revenue Authority encouraged Tax payers to take advantage of the tax
amnesty is a limited-time opportunity for taxpayers and potential taxpayers who
have defaulted in any of their four
basic TAX obligations in exchange for forgiveness of and or in some
cases the tax, interests and penalties without fear of prosecution. According
to Mr. Hotsonyame, the Value Added Tax
(Amendment) (No.2) ACT,2017 (Act 954) which institutes Withholdings Value Added Tax (WVAT) is a mechanism
to account for and pay Value Added Tax on the supply of goods and services by
the person making the payment. The act also gives the Commissioner General the
mandate to appoint Withholding VAT agents to withhold a portion of VAT on
payments made to a VAT registered supplier and then Agent remit to GRA and this
not a new tax but a method of collecting VAT. In a public discourse,
participants shared grieves on projects financed with tax payer’s money that
yields no benefit to the country.
Some participants urged the government in the coming budget disclose how the taxes generated by GRA are being used to encourage prospective tax payers.
Some participants urged the government in the coming budget disclose how the taxes generated by GRA are being used to encourage prospective tax payers.
No comments