Minister ask assemblies to match tax collection with development projects

Koforidua, May 4, GNA - Mr Samuel Ofosu-Ampofo Eastern Regional Minister, has asked the New Juaben Municipal Assembly to demonstrate the linkage between the revenue it collects and the services it provides, to encourage people to honour their tax obligations. He said prudent use of the resources would disabuse the minds of the citizenry that it was only central government that provided development projects and services.

The Regional Minister was speaking at the inauguration of the Assembly's revenue mobilisation campaign in Koforidua at the weekend, which was collaborated by the Social Investments Fund to beef up the exercise.

Mr Ofosu-Ampofo said although the District, Municipal and Metropolitan Assemblies had the legal powers to generate revenue, most of them could not meet the targets set for internally generated funds and thereby spent only 10 per cent of their resources on infrastructural development.

This, he said, was below the 15 per cent directive of the Ministry of Local Government and Rural Development and stressed that every effort must be done to improve upon the local revenue generation in the Municipality.

He urge the citizenry to be part of the Assembly's efforts in generating funds by reporting people who evade tax to the appropriate authorities for the necessary action to be taken against them. Mr Alex Asamoah, Municipal Chief Executive, said analysis of the Assembly's budget showed that, between 2005 and 2009, local annual revenue collected did not exceed 78 per cent of the set target. The Assembly was able to collect about 74 per cent of its set revenue annually.

He revealed that many landlords in the Municipality evaded payment of property rates while others arranged with corrupt officials of the Assembly to under pay the rates. He said, under the campaign, 50 r evenue collectors have been recruited to visit homes and business entities to educate the public and collect taxes.

Mr Asamoah urged the volunteers to be diligent and hardworking for the Assembly to realise its set objectives.