Management of CEPS launches Tax Education Campaign

Takoradi, July 17, GNA - Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning on Tuesday called on personnel of Customs, Excise and Preventive Service (CEPS) to re-double their efforts in the promotion of voluntary tax compliance. He said they could re-orient their operations to make them more transparent to clients.

Mr Baah-Wiredu made the call in an address read for him by Mr Harry Owusu, Executive Secretary of Revenue Agencies Governing Board at the launching of this year's CEPS Tax Education Campaign at Takoradi. It is under the theme "Tax Compliance: An Effective Tool For Revenue Mobilization"

Mr Baah-Wiredu said there was the need for CEPS to re-engineer its operations to make it customer-friendly, less cumbersome and invest in developing skills of personnel through education and training. He said the theme for the campaign re-affirmed that CEPS was moving into a new era of tax administration to build an enduring partnership with the tax payer and the public to create an efficient and transparent tax system.

Mr Baah-Wiredu said one of the surest ways to achieve voluntary compliance was to improve public perception of revenue administration in the country by working hard to improve upon organizational efficiency and effectiveness through improved service delivery.

He said CEPS could create a transparent tax system that would promote voluntary compliance to realize objectives of the campaign by ensuring the integrity and fairness of the tax system. Others are to build the enforcement capacity of key operational areas, create conditions to promote organizational efficiency, effectiveness and improve trade facilitation mechanism by developing specific industry support regimes.

Mr Baah-Wiredu said voluntary compliance should be seen as a fiscal measure to increase revenue generation without increasing tax rates and when properly pursued and implemented could be a viable tool for optimising tax revenue without recourse to more robust and compelling enforcement regimes.

He said Ghana's tax reform policy was tailored to create a solid, rational and definitive tax system that would reduce the fiscal pressures on government and structural measures instituted must be supplemented by a rigorous tax system with voluntary compliance as a major policy option.

Mr Baah-Wiredu said, "Voluntary compliance would help strengthen business competitiveness, create jobs and encourage investment". He said the objective of the country's tax reform policy was to increase tax revenue through improved compliance with tax laws, broadening the tax base, improving effectiveness, responsiveness and efficiency of tax administration through institutional and procedural reforms.

In addition it would improve collection through transparent and high quality tax service including the strengthening of audit and enforcement procedures.

Mr Baah-Wiredu said there was the need to simplify the tax system, educate taxpayers, and improve mechanisms for compiling data and keeping records in addition to other enforcement measures, which could be veritable tools for ensuring compliance.

Mr Baah-Wiredu said this was why government's fiscal policy measures focused on tax policy change that was intended to make the tax system more responsive to growth and easier to administer as well as improvement in tax administration to increase efficiency of collection. Mr Emmanuel Doku, Commissioner of CEPS, said there were efforts by management to instil the culture of voluntary compliance in Ghanaians and reduce cost of collection.

He said one critical component of voluntary compliance was the systematic and comprehensive compilation of all taxpayers across revenue agencies and the need to pursue an integrated tax reform programme to strengthen national tax institutions through institutional and organisational re-engineering.

Mr Doku said voluntary compliance must be perceived and pursued in a multi-functional and multi-agency fashion through the constructive engagement of stakeholders.

He noted that Ghanaians would not accept any excuses when CEPS registered major shortfalls in its revenue targets therefore, tax education must be seen as one of the most important tools in revenue mobilization.

Mr Doku reminded CEPS personnel that the overall success of the tax campaign depended on the quality of service provided to clients, dedication and commitment to duty.

Mr Anthony Evans Amoah, Western Regional Minister, said money collected through tax was used for development therefore people should sacrifice and honour their taxes. Nana Kobina Nketia V, Omanhene of Essikado Traditional Area, said revenue realized from taxation should be used for development for the benefit of the people. He said there should be transparency in the utilization of tax revenue. 17 July 07