Banks are to provide collection services with bullion vans on designated days
Giving that the outturn of non-tax revenue for 2018 and first half of 2019 has been below target, government has initiated a policy measure to address revenue leakages due to fraudulent receipting and handling of cash. This is the expansion of the use of banks for collection of non-tax public revenues.
In the first half of 2019, non-tax revenue collected amounted to GH¢3,121.7 million, against a programme target of GH¢4,475.8 million. The budget for non-tax revenue collection has also been adjusted further downwards by GH¢ 548,700,314. In turn this led to a nine percent shortfall in total public revenues for the first half of this year.
Two years ago an agreement has been entered into between government and a handful of approved commercial banks to collect internally generated funds (IGFs) on behalf of government ministries, departments and agencies as well as Metropolitan, Municipal and District Assemblies (MMDAs) and Government Hospitals. The ultimate aim is to diversify public revenue sources away from taxes collected by the Ghana Revenue Authority for the central government.
According to the Mr. Kwarteng, the programme has now been opened to include all commercial banks operating in Ghana after two years of its implementation. Currently, there are nineteen (19) banks participating in the programme and this is expected to increase to twenty-one by the end of the year.
During the signing ceremony, Mr. Kwaku Kwarteng, a Deputy Minister for Finance, urged participating Banks to cooperate with the Ministry, the Controller and Accountant-General’s Department, the Bank of Ghana and all assigned Government Agencies to ensure effective mobilization of Internally Generated Fund (IGF).
The programme is aimed at facilitating the collection of Non-Tax Revenue/Internally Generated Funds (NTR/IGF) and to among others ensure that collections are promptly paid into the consolidated fund.
The categories of services under the programme include the on-site Banking services where the assigned participating banks locate teller offices at the premises of the host MDA, MMDA and Government Hospitals.
Alternatively, the Banks are to provide collection services with bullion vans on designated days, times and location to pick the proceeds from the host institutions.
The continuous operation of the banks under the programme is highly dependent on the level of its compliance with obligations under the contractual agreement as well as the purpose for which the programme was initiated.
The Deputy Minister disclosed that based on an audit review of the programme carried out this year, some banks found culpable of delaying in the payment of funds into the consolidated fund have lost their MDA clients to compliant banks.
Present at the ceremony were 18 commercial Banks that included GCB Bank, Standard Chartered Bank, Access Bank, First Atlantic Bank, Prudential Bank, Agricultural Development Bank, Ecobank, Zenith Bank, Fidelity Bank, Guarantee Trust Bank, Cal 12. Bank, First Atlantic Bank, National Investment Bank, Barclay’s Bank, UBA, Universal Merchant Bank, and Societe Generale Bank.
A number of Government Agencies present to sign the agreement included Lands Commission, Nurses and Midwifery Council, Fisheries Commission, Ghana Investment Promotion Centre, a number of Hospitals, Food and Drugs Authority, among others.
In addition, non-tax revenues are expected to be boosted by the proceeds from the sale of Electromagnetic Spectrum, as well as the fees from Telco’s Licenses renewal.
