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Guard against revenue leakage - Tax agencies urged

Cedis66

Mon, 18 Nov 2013 Source: B&FT

Mr. Paul Evans Aidoo, Brong Ahafo Regional Minister, has reiterated the need for tax collection agencies to contrive pragmatic measures to block all revenue loop-holes to thwart the tendency of draining the country of gargantuan sums of money that could facilitate socio-economic development.

He said government has put in place significant systems like the promulgation of the Ghana Revenue Authority Act, Act 791 of 2009, which integrates all tax agencies under one umbrella to enhance expedite tax administration --but was quick to add that tax reforms and policies are not enough to increase revenue generation; and therefore it is imperative for tax collection bodies to engineer mechanisms to freeze revenue leakage as well as step up tax education to educate the public on the need for it to honour tax obligations to complement government’s effort.

Mr. Aidoo made the call in a speech read for him during a public tax education forum held in Sunyani. The yearly regional-based gathering, organised by the Customs Division of the Ghana Revenue Authority (GRA), is aimed at educating taxpayers and the general public on their tax obligations -- specifically the modalities of filing tax with Customs at their various stations (frontiers and ports).

It also affords the public an opportunity to express its views on how to improve the system so as to enhance revenue mobilisation and activate their feeling of ownership to national assets that result from the taxes.

The Regional Minister said: “Tax administration and compliance has become critical in recent times with the increasing public demand for better salaries, improved social services and enhanced infrastructure the face government on daily basis”.

He noted that the above-mentioned economic and social challenges which manifest in ever-increasing agitation on the labour front by way of industrial actions for various reasons, including the cost of living, utility tariffs and demand for meaningful wages, calls for a holistic approach in tax mobilisation to enrich government’s purse for its development drive.

“Tax obligation plays a vital role in any governments’ efforts geared toward achieving sustainable growth, expansion and economic diversification. National development largely depends on the effective and efficient tax policies that operate, as well as the level of compliance by tax authorities and taxpayers,” he emphasised.

Taking the participants through general information on importation and registration of vehicles, Courage Dzakuma, a Revenue Officer, cautioned the public -- particularly prospective vehicle buyers -- to be meticulous about the authenticity of all documentations, and urged the public to always verify from Customs in order not to fall victim to some unscrupulous dealer.

Regarding penalties on importation of vehicles, he stated that under the current Law (Act 634) any vehicle that remains un-entered and un-cleared over 60 days after discharge -- or in the case of overland vehicle, from the date it crossed the national border into Ghana -- shall be forfeited to the state.

The participants were also schooled in other aspects like importation through GCNET-connected stations, transit and temporary importation, as well as free-zone enclaves. The workshop was under the theme “Honouring tax obligation is a sign of good citizenship”.

Source: B&FT