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Business News of Friday, 7 February 2020

Source: 3 News

GRA targets GH¢55 billion as revenue in 2020

The Ghana Revenue Authority (GRA) is challenging itself to generate GH¢55 billion in tax revenue this year.

The figure is above a target of GH¢47 billion set for the Authority.

Acting Commissioner-General of GRA Reverend Ammishaddai Owusu-Amoah disclosed this at the 2020 management retreat held in Kumasi.

He noted that the figure is a growth of 25.2 per cent over the previous year’s collection.

“Of the target for 2020, Domestic Direct is expected to collect GH¢26.3 billion, Domestic Indirect target of GH¢13.2 billion and that of Customs is GH¢15.5 billion.”

GRA collected a total of GH¢43.9 billion against a revised target of GH¢42 billion by the close of 2019.

This represents a revenue growth of 16.6 per cent and exceeding the revised target by 4.4 per cent.

The Authority attributed the realization of the target to massive debt collection exercise and enforcement of excise tax stamp among other factors.

Outlining the strategies to help in the attainment of the revenue target for 2020, the Commissioner-General said the Authority will automate the payment of VAT.

This will involve linking teller systems of VAT registered businesses to a centralized database to ensure that VAT collected is credited to the Authority in real time.

“GRA will authorize banks to accept the payment of taxes. This will bring convenience into tax payment as taxpayers will not have to physically come to GRA office to pay taxes. In the same vein, payment of Vehicle Income Tax and Tax stamp via mobile money will be introduced this year.”

Again, all modules in the second phase of the Integrated Tax Application and Processing System will be rolled out starting from March 2020.

This system will automate the filing of returns, issuance of tax clearance certificate, withholding tax credit certificate and tax credits certificates among others.

Ashanti Region Minister Simon Osei Mensah tasked GRA to make payment of taxes easier.

“In order to optimize your resource, it is relevant for the Authority to minimize human interface in the activities you do, therefore, digitization of your system is paramount.

“Payment of taxes has never been comfortable to any person. While I’m urging all of us to pay our taxes, I’ll urge GRA to also make payment of taxes easier and less cumbersome.”

GRA plans to introduce an Informant Award Scheme where informants will be rewarded for providing information that leads to recovery of taxes owed by businesses.

The 2020 retreat themed ‘Roadmap to Excellence’ brought together management of the Authority across the country to deliberate and fine-tune their strategies for the year.

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