Friday, February 26, 2016

GRA hopeful of GH¢27.59b revenue collection target



Commissioner-General of the Ghana Revenue Authority (GRA) Mr. George Blankson is hopeful that with suitable revenue collection strategies, hard work and resilience of staff, it’s GH¢27.59billion revenue collection target for 2016 will be achievable.

The revenue collection target includes GH¢11,513billion domestic direct taxes; GH¢5,916billion for domestic indirect tax and GH¢10,159billion for Customs’ taxes and duties.

Speaking at a media interaction for senior journalists in Accra to deepen the Authority’s relationship with the media for mutual benefit, Mr. Blankson said appropriate measures to be implemented included a takeover of classification, valuation and risk management by Customs Division from the Destination Inspection Companies, which contributed significantly to the 2015 revenue even though the takeover was just in September, so it is expected to yield even higher dividends this year.

Other measures include the intensification of public education, harmonisation of tax regulations and laws to make implementation and application easier and friendlier, as well as a boost in the work of the revenue mobilisation task force.

Mr. Blankson said GRA will also implement the Excise Tax Stamp (ETS) system this year, adding that the ETS is not a new tax but a new way of better administering excise tax by placing the ETS on all excisable items, both domestically and from abroad.

He disclosed that in 2015’s fiscal year the Authority exceeded its revenue collection target by GH¢620million, representing 2.9 percent above its target for the year. 

The target for last year was GH¢21.57billion while the Authority collected GH¢22.17billion, showing a revenue performance growth of GH¢ 5,014billion that represented 29.3 percent over the 2014 revenue collection figure.

He cited increasing the number of tax audits, regular external visits to and inspections of taxpayers’ businesses to retrieve outstanding taxes, roping-in operators from the informal sector, among others as accounting for achieving the revenue target.

Mr. Blankson again indicated external visits to taxpayers' businesses, hard work by the revenue mobilisation task force and support from the Ministry of Finance among others.

Expressing appreciation to the media for strategic partnerships in disseminating information to the public, he said: “Education through the media to taxpayers particularly helped to improve taxpayer voluntary compliance”.

He explained that implementation of the Income Tax Act, 2015 (Act 896); the Customs Act, 2015 (Act 891); the Common External Tariff; the Excise Tax Stamp Act, 2013 (Act 873), the other phases of the national single window system and other tax issues all require intensive public education.

“GRA will intensify public education to ensure a buy-in of these policies by the public, and greatly rely on the media to complement our efforts.”

He indicated that as part of the reforms in tax administration, GRA has been engaged over the past three years in reviewing the various  tax laws to conform to international best practice -- making them less complex, easier to understand and more user-friendly. As a result, the Value Added Tax Act and the Excise Tax Act have already been passed.

“In 2015 the Customs Act 2015(Act 891) and the Income Tax Act, 2015(Act 896) were passed.
“While the Customs Act, 2015 (Act 891), became operational in 2015, implementation of the income Tax Act, 2015 Act (896) began last month,” he said.

He indicated that the GRA completed and evaluated the first strategic plan 2012-2014, and successfully completed the second strategic plan for 2015-2017.

“We believe that successful implementation of the activities lined-up in the strategic plan from which projects are derived will contribute significantly to usher the Authority into a modernised tax administration,” he remarked.

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