GRA urges public collaboration to expose tax evaders
The Assistant Commissioner at the Commissioner General’s Secretariat of the Ghana Revenue Authority (GRA), Dominic Naab has called on Ghanaians to collaborate with the GRA to expose tax evaders, whose actions impede the country’s economic development.
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"Individuals who are hiding income and not paying taxes are hindering our economic development. Let's work together to expose them," he remarked during a UK-Ghana Chamber of Commerce (UKGCC) webinar with PwC Ghana on “Tax Updates in Ghana’s 2024 Budget.”
To encourage public collaboration on revenue mobilization, Mr. Naab announced the existence of an “Informants’ Award” for persons providing the GRA with information leading to tax recovery. He implored the public to take advantage of the award.
According to Mr. Naab, the GRA intends to continue its rigorous revenue mobilization drive in 2024, stating that “we will not collect more than what the law requires but expect public cooperation.”
In the spirit of collaboration, partnership, and cooperation, he urged business owners to comply with tax laws and engage the GRA to resolve any tax-related issues they may encounter.
Ghana’s 2024 Budget: Policy, Administrative, and Tax Reliefs
The 2024 revenue measures (policy) include expanding Gross Gaming Revenue coverage, implementing a 10% Withholding tax on lottery/gaming, reviewing selected VAT exemptions, introducing an Emissions Tax on industrial and vehicle emissions, implementing the second phase of the Communications Service Tax, and the Modified Taxation scheme, among others.
During his presentation, the Head of the Tax Policy Unit at the Ministry of Finance, Daniel Nuer noted that the second phase of the Communications Service Tax will cover internet service providers, radio, and TV broadcasters.
On Administrative measures, Mr. Nuer indicated that the implementation of the Minimum Chargeable income will commence this year, while the second phase of the electronic invoicing system (EVAT) will be fully implemented this year.
The 2024 Budget also offers tax reliefs to businesses to support Ghana’s local industry, including an import duty waiver on agricultural machinery, equipment, and inputs not available locally.
There are also VAT exemptions on the importation of commercial electric buses for public transportation only, and a VAT zero rate introduction for locally manufactured sanitary towels. The VAT zero rate for locally manufactured vehicles and textiles was also extended for a further two years.
Mr. Nuer encouraged webinar participants to peruse the 2024–2027 Medium-Term Revenue Strategy available on the Ministry of Finance’s website and implored taxpayers to ensure they follow tax rules.
“Everything will be done to support taxpayers to comply. When we fail to comply, note that penalties will be imposed. It is an unpleasant duty that we will carry out.”
Expectations, Concerns, and Challenges
The Associate Director-Tax Services at PwC Ghana and a panelist on the webinar, Gifty Appiah mentioned that “taxpayers feel disappointed with the Budget.”
She highlighted instances where businesses folded due to increased tax costs and uncertainty in the investor community regarding the implementation of measures.
Mr. Nuer assured the webinar that systems are in place to support the measures.
Expanding the tax net
Mr. Naab emphasized that the GRA is making monumental efforts to expand the tax net.
“We are educating, talking to people, and have enforcement officers reaching out. We need the public’s cooperation to identify those operating outside the tax net.”
“We need to work together to build this country. We are doing our best and need your help to get everyone registered,” he added.
An Associate Director, Tax Services at PwC, Laura Torgbenoo Fiagome moderated the webinar, which discussed the Government’s fiscal policy objectives, 2024 macroeconomic targets, emissions levy, the Special Voluntary Disclosure Programme, and VAT invoice security features verification.