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Business News of Tuesday, 9 August 2022

Source: www.ghanaweb.com

Today in History: Over six thousand lawyers not paying tax – Ofori-Atta reveals

Finance Minister, Ken Ofori-Atta Finance Minister, Ken Ofori-Atta

It's exactly a year the Finance Minister, Ken Ofori-Atta, announced that over 6,000 legal practitioners do not honour their tax obligations.

Among other professionals that do not pay their taxes, Ken Ofori-Atta noted were some medical doctors in the country.

He further added that over 60,000 businessmen also evade taxes in the country.

“We went through the exercise to sort of titrating to see what we’ve got, and we got about 60,000 businesspeople who were not paying taxes some 5,000 or 6,000 lawyers are not.

Some doctors [are not paying income tax], so you begin to see all of these professionals, all of us on social media ranting against the government and [realize] that most of these people are not even paying taxes,” the finance minister said.

Read the full story originally published on August 9, 2021 by Starrfm.com.gh.

Six thousand lawyers in the country are not filing their income tax, Finance Minister Ken Ofori Atta has revealed. He also disclosed that several doctors and over 60,000 business people have been evading tax, per an exercise conducted by the Ghana Revenue Authority.

The Minister called on Ghanaians to stop bashing the government over the country’s current state due to the fact several professionals are not even paying their taxes.

Mr Ofori Atta said, “so, once upon a time, we had 5.5 million Tax Identification Numbers which most of us try to dodge now today, because of the National ID, GRA has 15.5 million TINs. Now that’s triple.”

In an interview with Asaase Radio, the Finance Minister added, “and then we went through the exercise to sort of titrating to see what we’ve got, and we got about 60,000 businesspeople who were not paying taxes some 5,000 or 6,000 lawyers are not. Some doctors [are not paying income tax], so you begin to see all of these professionals, all of us on social media ranting against the government and [realize] that most of these people are not even paying taxes.”

“So if you look at the multiplier effect of that, we are currently at about 14% of revenue-to-GDP ratio, and our peers are 18% to 21%,” he added.

On the GRA’s revenue target, he indicated, “if GRA is telling us that we are targeting GHC57 billion for this year, it means that if you have half of that, let’s say GHC30 billion, another GHC30 billion is sitting there somewhere in the wings.”

“Now that’s an enormous amount of resources that we can tap into, to be able to fund development projects. And that’s what gives me the excitement and hope that we can really fund this development [agenda]. The exciting thing after four years of the administration and being given the mandate for another four years is that a lot of learning has occurred.”

He added, “usually, when we talk about compliance, people are quite cynical about that: can GRA step up their game and do much better? So, structurally, we are changing. And thanks to the vice-president’s push on digitization, we are getting there.”

Voiew his Timepath below:



ESA/MA

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