The Ghana Revenue Authority (GRA) has announced it surpassed its mid-year revenue collection target, despite facing challenges in the first quarter of 2024.
The GRA was tasked with collecting 145,992.38 billion Cedis for the year. The authority however achieved a half-year total of 68,049.33 billion Cedis. This represents a 0.2 percent increase over the targeted amount for the period.
Following a slow start with shortfalls in January, February, and March, the Authority credits its turnaround to a focused 90-day plan implemented by the new leadership team in April.
The plan addressed key areas like revenue measures, staff well-being, a shift to a more collaborative approach with taxpayers and stakeholder engagement.
The plan included initiatives like:
Electronic VAT Invoicing System: This was launched in April. The system successfully registered over 600 top taxpayers, accounting for 80 percent of VAT contributions. This initiative promises real-time data collection and is expected to streamline the VAT regime.
Special Voluntary Disclosure Programme: This program encourages residents to disclose previously undisclosed foreign income. Ghana’s participation in an Organisation for Economic Co-operation and Development (OECD). information-sharing program strengthens this initiative.
Upfront Payment of VAT Initiative: This program helps capture previously unregistered businesses by requiring VAT registration for those importing taxable goods in commercial quantities. Over 176,000 new taxpayers were registered under this initiative.
Shifting Approach and Stakeholder Engagement
The GRA acknowledges a shift from an enforcement-centered approach to a collaborative partnership model. This includes planned training programmes for customer service and taxpayer education initiatives. A partnership with the Methodist Church aims to leverage religious teachings to promote tax compliance.
They pledged continued engagement with all stakeholders to ensure effective resource mobilization for Ghana’s economic development.
Looking Ahead
The Authority is optimistic about its future revenue mobilization. “The GRA remains committed to achieving the full-year target of 146 billion Cedis and a 20 percent Tax-to-GDP ratio by 2027. The Authority emphasises its focus on administrative and legal reforms to broaden the tax base, minimise tax avoidance, and ensure a fair system”, according to Commissioner-General, Julie Essiam.
By Eben Agyekum-Boateng, 3Business
