Wednesday, February 2, 2011

GRA projects revenue collection of GH¢7.5m

The Ghana Revenue Authority (GRA) is projecting a revenue collection total of over GH¢7,531.06million including petroleum revenue for the year 2011.

Revenue expectations from upstream petroleum will amount to GH¢321.86million - representing 4.3 percent of total tax revenue.

GRA exceeded its revenue collection target of GH¢5,944.05million for 2010, representing an increase of 0.5 percent and posting a 23.6 percent growth in revenue over 2009 collections.

Out of the GH¢5.944 million collected, direct tax amounted to GH¢2.441 million, indirect taxes GH¢1.061 million and customs, including petroleum, which raked in GH¢2.442 million.

George Blankson, Commissioner–General, GRA, at a media interaction in Accra said: “The management of GRA is devising strategies to increase revenue mobilisation to meet this year’s target, and it will focus attention on streamlining the operation of the customs-bonded warehouses, Value Added Tax refunds, issuance of permits and the Communications Service Tax to boost revenue collection.”

“Management is committed to ensuring that the two prongs of tax reform and revenue enhancement are kept in perfect balance and proceed in tandem.

“Considerable investments of time and effort were also made in business processes re-engineering and business requirement specifications,” he noted.

Mr. Blankson explained that GRA made considerable progress in working with private partners in the development of an integrated revenue information system to provide one platform for the administration of all domestic tax under the e-Gov project.

The Commissioner-General indicated that the reform process, which was aimed at putting revenue collection on a higher growth path in the long-term, will be supported by short- and medium-term measures such as intensified tax audit, proper and effective management of information at the district offices, quick examination of submitted returns and expansion of automation process.
An additional direct investment that yields 10 percent growth in collection will mean an additional US$400 million in a year, making GRA the most viable area for government investment.

He observed that the abrupt drop in revenue-GDP ratio from 21.4 percent to a mere 12. 6 percent in the wake of the re-basing raises the need for a comprehensive review of our collection procedure and processes.

“There was the need to look critically at using tax waivers and exemptions as incentives for attracting foreign direct investment.

“The GRA's focus on the tax reforms has been on the review of the tax legislations for purposes of simplifying them and streamlining processes.

“In this direction, a draft consolidated Administration Act that brings together the administration provisions in the Act - under which direct tax, VAT and indirect taxes and customs duties are administered - has been produced,” he remarked.

Major (Rtd) Daniel Sowah Ablorh-Quarcoo, Commissioner, Domestic Tax Revenue Division, urged taxpayers to comply with tax laws and cooperate with tax authorities for good relationship between taxpayers and tax administrators.

He disclosed that GRA is on course with its computerisation system which will include speedy registration of businesses; assessment, collection and accounts; and will also network all other agencies.

“With the completion of the automation system it will help GRA expand the tax net to reach more people and will also improve efficiency in tax administration and enhance transparency,” Ablorh-Quarcoo stated.

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