Terkper wants boost to taxes

Finance Minister Seth Terkper, who is battling a large budget deficit amid a shortfall in tax revenues, has asked the Ghana Revenue Authority (GRA) to adopt innovative revenue-enhancing strategies to raise the level of tax-compliance and bring equity to the tax system.

Speaking from a speech read by an advisor and tax expert, Dr. Edward Larbi-Siaw at a GRA awards ceremony in Accra, the Minister said various measures have been announced in the 2014 budget to help consolidate and strengthen revenue mobilisation, but their successful implementation depends on the strategies that the GRA will adopt to bring both its staff and taxpayers on board.

 “It is said that innovation is the bedrock of economic prosperity. Without new ways of thinking and new ways of doing things we will remain stagnant as a country,” said Mr. Terkper at the event, where Commissioner-General George Blankson disclosed that the authority missed its 2013 target by 15.7 percent.

The GRA collected GH¢13.2billion, a 12 percent improvement over last year but short of target; probably because of the slowdown in the economy. The shortfall, together with wage pressures and lower grants, led to a fiscal deficit of 10.8 percent of GDP against an estimated 10.2 percent.

Mr. Terkper said the GRA must intensify its stakeholder engagement programmes, interact more with taxpayers and build consensus to enable it boost revenues. He told the authority’s management that strategies such as setting up special taskforces to monitor and enforce compliance are helpful, but must be reviewed from time to time to ensure the desired results are achieved.

Mr. George Blanskon said the inability of the authority to meet its 2013 target, despite strident measures to ensure every Ghanaian pays his taxes, is worrisome.

He asked taxpayers to partner GRA to enhance mobilisation and collection, urging income earners who are not on the books of the authority to register to get a tax identification number.

He said the authority is in the process of introducing its self-assessment regime as a means of assessing taxpayers nationwide, effective January 1, 2015.

“It is important for taxpayers to keep accurate records, file the correct returns and pay the appropriate taxes as well as minimise disputes, as the authority rolls-out Medium and Small Tax Offices nationwide.”

Mr. Terkper still recognised the GRA’s hard work in spite of the missed target, saying: “We all admit that a number of challenges such as the energy crisis which plagued the country last year partly affected revenue mobilisation. The fact that you were able to juggle the multiple tasks of revenue mobilisation and integration is laudable”. 

The GRA’s awards event had the theme “Recognising Excellence in Revenue Mobilisation for Nation Building”, and sought to incentivise the young workforce and encourage them to come up with new ways of mobilising revenue effectively.

Award winners included Florence Mensah, Augustina Hammond, and Charles Moses, who were recognised as best workers in the junior staff category.

In the senior staff category, Charles Adjei Yeboah, Yaw Boahene Kwarteng and Raymond Yao Amedeke were named as winners.

Scancom Ghana Limited, Ghacem and Ghana Commercial Bank received awards in the best taxpayer category.