The Ghana Income Authority (GRA) has joined requires coverage reforms to simplify the nation’s tax administration.
Based on the Commissioner Normal Julie Essiam the present Worth Added Tax (VAT) construction makes it troublesome for people and companies to conform.
She made this name on the twelfth Annual Worldwide Tax Convention organized by the Chartered Institute of Taxation, Ghana.
“These insurance policies should be easy and simple to know by everybody and all of us. As we glance into the longer term as a income authority, we imagine that the longer term tax insurance policies ought to concentrate on the simplification of tax handles.”
“For instance, we should work in the direction of having a easy charge for VAT and keep away from the perceived cascaded impact of the simplicity of charges below the present regime,” she added.
She furthered {that a} evaluate of the coverage will drastically improve compliance amongst non-public sector companies.
“Tax insurance policies should subsequently be versatile sufficient to develop and optimize tax revenues in tandem with non-public sector growth.”
Ghana is below stress to enhance its home income inflows. The present financial challenges and the nation’s incapacity to boost funds from the worldwide capital market has made it crucial to spice up home income era.
The Ghana Income Authority (GRA) introduced in July, 2024 that it collected GH¢68.05 billion for the primary six months of 2024, exceeding its mid-year goal by GH¢138.69 million, representing 0.2 per cent extra assortment by the authority.
Companies advocate evaluate of VAT
Enterprise associations, together with the Ghana Union of Merchants Affiliation (GUTA), advert the Affiliation of Ghana Industries (AGI) have persistently name for a evaluate of the present VAT system describing it as disincentive to the non-public sector.
GUTA has partly blamed the present VAT system on the value hikes out there.
CIT enter
On his half, President of the Chartered Institute of Taxation, George Ohene Kwatia advocated for a nationwide tax coverage to harmonize actions within the sector.
He maintained that this can assist assist political events and streamline the tax insurance policies.
“When you have a real nationwide coverage, it’ll drive the tax agenda. It will function a suggestion for each authorities that involves energy. It will keep away from frequent modifications in our tax regimes based mostly on the federal government in energy.”
12TH Annual Worldwide Tax Convention
The convention was organized by the Chartered Institute of Taxation, Ghana.
It goals to create a novel platform for coverage makers, academia and tax professionals to share concepts on enhancing the nation’s tax regime.
It encourages conversations on the event and implementation of tax reforms which creates an enabling setting for companies to thrive.
The three-day convention, which ends on the August23, 2024 is on the theme ‘Steadiness tax coverage and personal sector growth’.