Business News of Fri, 17 Feb 20171
Rent revenue increases by over 4000% in 2016 – GRA
Government’s revenue from rent increased by more than 4000 percent between 2015 and 2016, the Ghana Revenue Authority (GRA) has said.
The amount collected increased from GH¢145,434.51 to GH¢6,739,107.76 between the period. According to the GRA, revenue from excise recorded the worst performance as it dropped by 91.75 percent within the one year period.
Revenue from excise dropped from GH¢336,286.99 in 2015 to GH¢27,742.27 in 2016.
The figures were contained in a report by the Special Revenue Mobilisation task force of the GRA. The task force which commenced operations in 2015, collected a total of GH¢183,559,387.70 in revenue under nine different tax types.
This represented a thirty-two percent increase compared to the 2015 figure of GH¢138,827,203.91. Of the nine categories, VAT and NHIL raked in the highest value of GH¢103,932,641.77 in 2016. This was followed by withholding taxes, corporate taxes, Pay As You Earn (PAYE) with GH¢34,492,250.20; GH¢20,573,335.00 and GH¢15,608,162.60 respectively. Although revenue from rent performed best in terms of percentages, it placed sixth with GH¢6,739,107.76.
It was followed by revenue from self-employed and Communication services tax with GH¢1,117,309.71 and GH¢573,000 respectively. Excise recorded the lowest revenue of about GH¢27,742.27 with dividend accruing GH¢496,287.64 in 2016. Comparing the revenue collection in 2015 and 2016, withholding taxes recorded the highest drop of GH¢19,741,104.99.
Also, corporate taxes dropped by GH¢6,609,086.32 with excise dropping by GH¢308,544.72 in 2016. While describing the performance as encouraging, the Head of the Special Revenue Mobilisation task force at the GRA, Henry Sam however indicated that his outfit will intensify operations to meet its target this year.
“Where it is found or it is established that there are discrepancies on the records and transactions as against the declarations on tax returns, assessments will be made and businesses will be penalized to pay the interest and the penalties together with the tax.
“Where they default we will not hesitate to publish their names in their papers and also take other actions against them without any further notice.”