Gov’t urged to widen tax net

Government has been urged to develop policies to widen the tax net to enhance revenue mobilization in order to enable the country achieve economic self-reliance.

The call was made by a group made up of financial experts from West Africa who were in the country to explore business opportunities.

Their main interstes is in collaboration with government and its tax agencies to enhance revenue generation and improve tax collection in the country.

At a media briefing to announce their presence, head of the group, Mr. Prince Peter’s Banwo said: “Ghana can wean from the Britain Woods Institutions, if policy makers develop strategies that are directed at widening the tax net instead of enforcing new tax rate.

Efforts should be made to also bring into the net workers in the informal sector since majority of them were not captured under the current regime of tax collection.”

Mr. Banwo urged the government to strengthen the revenue agencies like the Internal Revenue Service, the Customs Exercise and Preventive Service (CEPS) and the Value Added Tax (VAT) which will promote transparency and reduce corruption.

“Government must have the political will to implement such strategies inspite of resistance from the civil servant and other policy makers.

Government must also try as much as possible to block the loop hole in the system. We don’t need tax increment but rather block the loopholes and that will increase the revenue base of the economy,” He pointed out.

The IRS is projecting revenue collection of over GH¢ 2.235 billion for this year. The Service exceeded its target revenue collection of GH¢1.55billion for 2009, representing an increase of 14.4 percent.

Tax experts have opined that the revenue agencies have failed to achieve success in their revenue mobilisation efforts due to their manual system of operation.

“The group would deliver services aimed at helping government to widen the tax net and improve revenue collection. CEPS, IRS and VAT Service, in particular would be assisted to operate at optimum levels.

Ghana has relatively peaceful political and economic environment, this will warrant the group to execute it mandate that will ensure an increase of over 85 percent of its revenue collection for national development,” members of the group contended.