The Ghana Revenue Authority (GRA) has noted that the unprecedented growth in tax revenue collection has kept Ghana in the IMF bailout programme.
The Authority noted that since 2020 it has met and in some cases exceeded the annual revenue targets despite challenges from the Covid pandemic.
The above assertion was made by the Authority in a statement issued on Friday, March 22, 2024.
The statement is to address what the Authority deems as “unfortunate” comments made by Vice President Dr Mahamudu Bawumia on revenue mobilization efforts by the tax collection body.
The Vice President addressing members of the Ghana Chamber of Commerce, accused the GRA of harassing businesses for taxes.
Further asserting that the harassment of businesses by the GRA was due to the tax body setting unrealistic revenue targets.
“We wish to place on record that the unprecedented growth in tax revenue collected in 2023 which yielded in excess of GHS 113bn is a major factor that has kept Ghana in the IMF bailout programme,” quipped the GRA.
“It is strange that the Vice President who doubles as the Head of the Economic Management Team could suggest that the Authority gives itself unrealistic targets while he is aware that annual revenue targets are assigned to the Authority by the Government through the Finance Ministry,” the statement read further.
“We the workers of GRA find this statement unfortunate and consider it as an attack on the efforts of the hard-working staff of the Authority which if not discontinued would incur the displeasure of workers and disrupt revenue collection,” it added.
Increased revenue mobilization with the objective of increasing tax revenue to GDP is one of the pillars on which Ghana’s successful completion of the IMF programme hinges.
Ghana’s tax revenue as a percent of GDP has often averaged 13%, less than most of its African peers with an average tax-to-GDP ratio of 18%.
In the current 2024 budget, the Government aims to increase tax to GDP to some 16.8% by raising some GHS 176bn in tax revenue.
Read the details of the statement by the GRA below:
Source:norvanreports