Well done, GRA, … but more work to be done
Many economic analysts, including some of the country’s development partners, hold the view that until the government is able to consistently meet its domestic revenue targets, it will not be in a strong position to deliver the kind of development needed.
This is a view in which the Daily Graphic shares, in view of the huge demands on the state for various development projects, chief of them being roads.
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A couple of weeks ago, the Roads Minister, for instance, said almost 70 per cent of the country’s roads were poor. That we find quite revealing, as it is unimpressive about a country whose citizens are highly expectant.
There are many other demands from the citizens, as they yearn to see governments deliver more development projects throughout the country.
That is why achieving revenue targets must be the paramount interest and concern of everybody.
For the first time in two years, it is satisfactory that the Ghana Revenue Authority (GRA) exceeded its revenue collection target for last year by 3.2 per cent.
The authority collected GH¢43.76 billion for the year under review, as against a target of GH¢42.08 billion, GH¢1.68 billion in excess for 2019.
The 2019 collection was 15.5 per cent more than what was collected in 2018, which was GH¢37.68 billion.
Although this achievement was after the government had slightly revised its domestic revenue collection targets for that year, it is important to note that what seemed realistic and not overly ambitious was good enough to set the pace for the GRA to meet its target for that year.
As we know it, these countless development needs of the citizenry can only be delivered if institutions such as the GRA are able to mobilise more funds for national development.
In explaining how the GRA was able to meet its targets, the authority noted that the excellent performance was largely due to a number of measures rolled out during the year, adding that the feat would serve as a great impetus for achieving the target set for 2020.
This year, the government has set a domestic revenue mobilisation target of GH¢47.25 billion.
Based on this, the GRA has enumerated some measures which will help it meet the target for the year. They include reforms at the ports, which will ensure that importers pay the right duties, the enforcement of rules, intensive debt collection, distress actions, some of which heightened especially in the fourth quarter of last year, as well as the conduct of more issue-based audits.
The Daily Graphic finds the measures outlined pragmatic and can only wish the authority well in its endeavours.
However, while we applaud the GRA for its achievement, we would want to prevail on the authority to give true meaning to what it has always been saying about widening the tax net and not increasing taxes.
Over the years, we have seen an increase in taxes, thereby burdening those who are already in the tax net and leaving the majority out of it.
There are many small business owners who are left out and this is the time for the GRA to ensure that it does not leave those eligible taxpayers out of its net.
To attract them, the authority needs to make its requirements simpler, easier and more attractive. Tax payment is a hindrance, yet many will be willing to pay if the process is made easier.
We implore the GRA to come up with some more innovative means by which the majority of the people can honour their civic duties to help the government mobilise more financial resources to provide for our development needs.
The status quo as far as revenue collection is concerned must change and the time to do so is now.