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Business News of Wednesday, 14 February 2007

Source: GNA

Demand for VAT receipt is civic responsibility

Ho, Feb. 14, GNA- Mr Danso Kyeremanteng, Volta Regional Director of the Value Added Tax Service (VAT), on Wednesday reminded Ghanaians that it was a civic responsibility for the individual to demand VAT receipt for goods purchased and services rendered.

He said failure to do this made it difficult for the Service to collect enough taxes for the nation's rapid socio-economic development. Mr. Kyeremanteng said this at the regional launch of tax education organized by the National Commission for Civic Education for its staff in Ho, the regional capital.

He observed that many people were normally less interested in demanding vat receipts and said the behaviour was not the best for the country.

Mr. Senyo Abladze, Principal Inspector of the Internal Revenue Service (IRS), observed that many people were ignorant of their tax obligations and responsibilities. He said cited that many people in the country were not paying tax on gifts worth over 50,000.

Mr. Abladze explained that only gifts from close relations were exempted from tax and deplored the attitude of people who received gifts from business partners and other people other than their close relations and refused to pay tax on them.

Answering a question on why Churches were not paying tax, the Principal Inspector said the law exempted all Churches of public character from paying tax.

Mr. Abladze, however, explained that Churches doing business were requested to pay tax adding that until the law clearly re-defined the nature of Churches of public character, the IRS could not collect tax from them.

Mr. Samuel Tetteh-Quarshie, Deputy Volta Regional Director of the Customs Excise and Preventive Service (CEPS), noted that the temporary importation of vehicles from countries within the West Africa sub-region, under an ECOWAS arrangement, was a major tax leakage for the country.

He explained that many were taking undue advantage of the opportunity to bring vehicles from the countries, especially Togo into the country.

Mr. Tetteh-Quarshie gave the assurance that CEPS would leave no stone unturned to seize such vehicles which were sometimes used for cross-border crimes.

Launching a tax education in Ho on Wednesday, Mr. Issaka Richard Zakari The Regional Director of National Commission For Civic Education (NCCE) reminded the public about the need for the individual to honour his tax obligation for rapid socio-economic development of the nation.