Tax Identification Numbers To Be Introduced

The Finance Ministry says it will introduce tax identification numbers for workers in both the formal and informal sector as part of efforts to enhance revenue generation. Currently the operations of two of the country’s three revenue collecting agencies are on target.

The Customs Excise and Preventive Service has exceeded it first quarter revenue collection by 9 per cent and the Value Added Tax Service, by 7 per cent.

The Internal Revenue Service, which collects tax on incomes and earnings is operating below its revenue collection target by 15 per cent. Finance Minister, Yaw Osarfo Marfo addressing a news conference on the state of the economy admitted that the IRS has suffered a set back in meeting its target because workers in the informal sector who far out number those in the formal sector are outside the tax net.

He was however optimistic that if the tax identification numbers are introduced, the problems dogging tax collection in the informal sector will be minimized. He told a news conference that all three revenue collecting agencies would meet thier targets by the end of the year.

To further raise government revenue, the Finance Minister announced that his Ministry would streamline the operations of private lotto operators to ensure that that state gets its due of revenue generated from the industry.

The Finance Ministry has employed professional debt collectors to retrieve all debts owed the government by individuals and organizations. Ten billion Cedis has so far been collected, but Mr. Osarfo Marfo is targeting 16 billion Cedis by the end of the year.