IRS commissions survey on impact of Energy Crisis on Revenue

Accra, April 23, GNA - The Internal Revenue Service has commissioned a survey to assess the full impact of the current energy crisis on the country's revenue mobilization effort for the year. The IRS is targeting to rake in 8.8 trillion cedis for the year but there are fears that the load-shedding exercise might negatively affect the Service's mobilization drive.

Major Daniel Ablorh-Quarcoo, Commissioner of the Service told the Ghana News Agency after the launch of this year's Revenue Week that, the survey being carried out in the manufacturing, mining, quarry and hospitality industries is to enable the Service to strategise in order to mitigate the anticipated loss that might arise. It is estimated that the Service lost 140 billion cedis in revenue last year from the impact of the load shedding on the manufacturing, mining and the quarry sectors since the power cuts started in August 2006.

Major Ablorh-Quarcoo said through the survey, the IRS would be in the best position to tell the effects on its revenue drive and institute remedial measures to ensure that the target for the year was met. The Service, in the first quarter of this year (January to March) mobilised 1.86 trillion cedis, a 10 per cent increase over 1.69 trillion estimated to be collected at the end of the period.

"I am quite confident that if things remain the way they are in the first quarter, we can meet our target easily," the Commissioner said although he agreed that companies were facing increasing production cost through the use of generating sets and loss of productive man-hours. This year's Revenue Week Celebration is on the theme: "Promoting Understanding of Income Taxation." It is been marked to create awareness among taxpayers, both individuals and corporate bodies to take their tax obligations seriously than is the case now.

Activities planned are radio and television discussions on topical issues and a tax seminar. 23 April 05