The Ghana Income Authority (GRA) has achieved extraordinary achievement in exceeding the authority’s income targets all through a three-year interval beneath the path of Commissioner-Basic Rev. Dr. Ammishaddai Owusu-Amoah.
With a mixed goal of GH¢171.66 billion, the GRA was in a position to generate GH¢ 178.16 billion between 2020 and 2022, together with revised targets of GH¢42.7 billion, GH¢57.02 billion and GH¢71.94 billion for 2020, 2021 and 2022 respectively. The GRA exceeded its goal by GH¢6.5 billion, representing 3.79 % in extra.
This excellent efficiency will be attributed to the GRA’s dedication to making use of technological initiatives, which improved transparency and effectivity in tax administration. Regardless of the challenges confronted through the Covid-19 pandemic, the Customs Administration System performed a major position in contributing to exceeding income targets in 2020.
The dedication of the GRA’s workers, together with the cooperation of taxpayers, has additionally been instrumental within the success achieved. The authority is poised to double its efforts in 2023 and the Commissioner-Basic has assured that his outfit will proceed to implement tax compliance to enhance tax assortment.
Taxpayers are urged to voluntarily adjust to tax obligations, which can assist the nation purchase enough funds for nationwide growth.
Previous to the 2020 pandemic 12 months, the GRA was in a position to exceed its income targets in 2016 and 2018, whereas falling brief in 2017 and 2019.
Key Coverage Measures
In 2020, the Ghana Income Authority (GRA) applied the Built-in Customs Administration System (ICUMS) to switch the earlier system for customs clearance. The brand new system aimed to enhance effectivity, improve income assortment, and scale back income leakages within the customs course of. The Authority has been making efforts to digitize its processes to enhance effectivity and scale back corruption. As an example, in 2020, the GRA launched a digital platform for taxpayers to entry its providers, together with submitting tax returns and making funds.
In the course of the 2021 fiscal 12 months, the GRA launched a number of initiatives to enhance voluntary compliance within the submitting of returns, cost of taxes and to make sure most income assortment. These initiatives included the TIN/GhanaCard Coverage, Prosecution Coverage and Cashless Coverage. Regardless of the challenges of the pandemic, the GRA exceeded its goal, and IT techniques like ICUMS and ITaPS minimized tax evasion and avoidance by making it handy for taxpayers to honour their tax obligations.
The GRA additionally intensified tax schooling and sensitization packages, applied a digital tax stamp system, and expanded the Massive Taxpayer Workplace (LTO) in 2021 to enhance compliance and income mobilization from giant taxpayers. The Authority additional strengthened its tax audit and investigation items to enhance tax compliance and scale back income leakages.
In 2022, the GRA outlined new tax methods to realize the federal government’s income goal, together with taxing e-commerce, on-line submitting of taxes by giant taxpayers, and taxing the web gaming and betting industries from April 2022. The Authority additionally intends to extend the value-added tax (“VAT”) penetration on on-line providers and merchandise. Moreover, the GRA plans to broaden the pay-as-you-earn (“PAYE”) knowledge by including a minimal of two million new taxpayers to the database, widening the tax internet to about 3 million by the tip of December 2022, and leverage on property tax to extend hire tax by December 2022. Lastly, the Authority intends to accentuate auditing and taxing of the extractive trade and introduce a debt assortment ratio of 5 % (5%) or much less by the shut of December 2022.
In 2020, the Ghana Income Authority exceeded its revised income goal by 6%, accumulating GH¢45.338 billion in comparison with the revised goal of GH¢42.7 billion. This was a rise of three.3% over the identical interval within the earlier 12 months. Initially, the Authority had set a goal of GH¢47.25 billion, which was later revised as a result of influence of the COVID-19 pandemic. The Customs Division of the Authority carried out effectively, exceeding its goal of GH¢10.9 billion by accumulating GH¢12.6 billion, representing a 4.5% year-on-year improve.
Transferring to 2021, the GRA achieved its income goal of GH¢57.02 billion, accumulating just a little over GH¢57.32 billion, which was a progress fee of 26.3% over the 2020 income, the best annual progress within the final decade. The Home Tax Income Division carried out exceptionally effectively, accumulating GH₵41.23 billion, which was a 25.6% enchancment over the 2020 income efficiency. The Customs Division additionally carried out impressively, accumulating ¢16.08 billion, representing a 26.8% improve over the 2020 efficiency.
In 2022, the GRA mobilized GH¢75.5 billion in home income, exceeding its goal by GH¢3.60 billion, representing a 5% improve over the earlier 12 months’s goal of GH¢71.94 billion. This feat additionally meant that the GRA collected 31.5% extra home income than in 2021.
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