The Chartered Institute of Taxation, Ghana (CITG) has noted that the coupling of the Value Added Tax (VAT) and related levies would have done more good to our VAT compliance efforts, as well as, address the inflationary pressure.
It is therefore difficult to appreciate the thought process that goes into rejecting that proposal in the 2024 budget presented on the floor of parliament.
According to Dr. Frank Gbadago, Chartered Accountant and Tax Practitioner at Chartered Institute of Taxation – Ghana and the Moderator of the “Post Budget and Economic Statement Presentation Discussion Forum” in Accra, there is also the need to encourage compliance and trust in the tax dispute resolution, we all agreed to have ITAB which was inaugurated at the beginning of the year.
He therefore expected a review on the coupling of the VAT and the levies as inputs, as it has great implications for inflation and by extension cost of living
The Virtual Forum is on the theme, ‘Unveiling Key Insights from 2024 Budget and Economic Statement with Tax Experts, and dubbed ‘Post-Budget and Economic Statement Presentation Discussion Forum’ in Accra.
In his presentation, a Tax Expert with KPMG, Godwin- Ayi Owoo noted the need to ensure that, tax to Gross Domestic Product (GDP) ratio in relation to the overall tax structure be looked at as gov’t intends to expand the informal sector taxation.
He raised concerns over huge tax exemptions including 1D1F among others which has negative impact on the tax administration in the country.
He called for stringer laws that would reduce the tendencies for various govt’s to dip its ‘hands’ into Funds that have been set for specific functions including emergency funds.
Mr Owoo suggested the deepening of the Public Private Partnership (PPP) to develop infrastructure so we as a nation do not always focus on taxes for such developments, but involve the private sector.
He noted with displeasure that, tax regime at the ports where huge trade passes through to other countries have a weak system and hence the need to have a second view at its operations.
In Mr Ayi-Owoo’s opinion, the budget lacks strategies to create more job opportunities for the teeming unemployed.
In his conclusion, Mr Ayi- Owoo said, Ghana as an investment destination needs to work on the economy to generate more taxes and put in place infrastructural development, resolve dispute as a means of increasing the country’s GDP ratio.
Speaking on the Value Added Tax (VAT) in the country, Mr Edmund Dwamena of the Ghana Revenue Authority (GRA) called for an actionable administrative guideline to ensure VAT compliance by companies registered per the law.
He disclosed that, Ghana has one of the lowest VAT rate on the continent which is around 20% whiles other countries is as high as around 30% and 48% in the sub-region hence the need to ensure VAT payment compliance.
He called for a stiffer policy to nip the abuse of VAT compliance and reduce the incidence of companies that declare loses yet could be seen expanding their operations.
Godfred Sey/Ahotoronline,com
