…Recorded a billion short of its target
Ghana has over the years, been struggling to raise the required revenue to march its expenditure. Last year, revenue mobilized was just a billion short of its target of GH¢33 billion for 2017.
There are fears that looking at the current challenges facing the economy, the government may struggle to secure the almost GH¢40 billion tax revenue for this year.
Finance Minister, Mr. Ofori-Atta told journalists in Accra he is hopeful this challenge would be addressed when he presents to parliament a new tax policy measures by July this year.
“We intend to present to parliament a package of tax policy measures at the time of the mid-year budget review to ensure sustained funding for our key programmes,” he said, adding that, “this policy document would give fine details on how to deal with the revenue challenges facing the economy.”
It is however not clear for now, whether the expected review by the finance minister could result in tax increases or just implementing additional measures to ensure compliance among working class in the country.
On his part, the Vice President Dr. Mahamudu Bawumia said, the government’s desire and ability to mobilise and maximise domestic revenue is an integral part of the President’s vision of a Ghana Beyond Aid.
Speaking at the ongoing Conference on Moving Ghana Beyond Aid in Accra, Dr Bawumia reiterated government’s commitment to developing Ghana by using domestic revenues and ingenuity.
He said government is putting in place the necessary blocks, such as the issuance of a national ID Card, a National Digital Property Addressing System, and the use of a Tax Identification Number (TIN) to access key services.
The Commissioner-General of the GRA, Kofi Nti, announced the introduction of the TIN earlier this year, revealing acquisition of the number will be tied to accessing public services like Drivers’ License, Passport, the opening of a bank account and even filing cases in courts.
The eleven digit number is a unique identification of taxpayers that will ensure tax compliance, help to properly monitor and broaden the tax net.
However, the Founder and President of IMANI-Africa, Franklin Cudjoe, has criticised the implementation process of the Tax Identification Number (TIN) policy, describing it as absurd and backward.
“You don’t generate TIN by filling forms and going to an interface with an individual and they give you some assigned number. It should be randomly generated then you can verify at the point of you needing a service,” he argues.
He cautioned the policy implementers, Ghana Revenue Authority (GRA), against going ahead with the current framework, stating doing so will become a de-motivator for the acquisition of the mandatory number.
By Sheila WILLIAMS
