BUDGET: Govt aims to improve VAT efficiency

The government on Thursday announced specific measures to improve operational efficiency of the Value Added Tax Service (VAT).

These include GCNET connectivity to provide access to trade import transactions, input tax verification identification, tracking and registration of non-registered importers and their customers and effective management of receivables.

Mr Yaw Osafo-Maafo, Minister of Finance, said this when he presented the 2003 Budget Statement to Parliament on Thursday.

He said as part of measures to further improve tax administration, a Large Taxpayers Unit (LTU) would be launched by the middle of June 2003.

This would initially cover about 350 tax-paying entities.

In support of the LTU and other initiatives, a Taxpayers Identification Number (TIN) Law was passed in 2002. During 2003, it is intended to build the TIN database and enforce its implementation in all revenue agencies.

Mr Osafo-Maafo expressed regret that the contribution of lotteries to total domestic revenue had fallen drastically over time since 1975, citing the gaps left in the operation of lottery by the Department of National Lotteries (DNL).

He said the problems associated with lotteries in Ghana had rendered the industry unproductive, adding: "This situation must be reversed as a matter of national priority."

"Consequently, it is proposed to repeal PNDCL 233. The repeal of PNDCL 223 will outlaw the activities of private operators."

He said government was aware of the number of people employed by private lotto operators and "wishes to assure the public that the restructured and well resourced DNL will be able to absorb lotto agents formerly employed by private lotto operators.

"Already numerous applications have been submitted by agents of the private operators because of the impending abolition of the law," he said.

He said the activities of the DNL had been brought under the direct supervision of the Revenue Agencies Governing Board (RAGB) while steps were being taken to amend the law and restructure the DNL.

Mr Osafo-Maafo said government had identified revenue leakages in Non-Tax Revenue collections of almost all MDAs.

"In 2003, all MDAs would be required to design and implement specific programmes to curtail the leakages. The Ministry of Finance will provide specific support to facilitate this endeavour," the Minister stressed.

He said all MDAs would be required to embark on special collection drives with support from the Non-Tax Revenue Unit within the Ministry of Finance.