Prof Baah-Boateng calls for higher tax revenue targets for GRA

Professor William Baah-Boateng, Head of the Economics Department at the University of Ghana, has called for an increase in the revenue targets set for the Ghana Revenue Authority (GRA).

Speaking at the inaugural Quarterly Economic Roundtable organized by the Ministry of Finance and the University of Ghana on July 2, 2024, Professor Baah-Boateng highlighted the GRA’s consistent ability to meet and exceed its revenue targets year-on-year as the basis for his recommendation.

He argued that increasing the GRA’s revenue targets would help elevate the country’s low tax revenue to GDP ratio.

However, Professor Baah-Boateng clarified that his suggestion was not to increase taxes but to address inefficiencies in tax collection, block tax revenue leakages, and reduce tax exemptions granted to businesses.

“GRA always reaches and exceeds its target, so if they are able to reach and exceed their target, why do we have lower revenues and low tax revenue to GDP compared to our peers? This suggests a need to re-evaluate the targets being set to ensure the country generates the revenue it needs,” he remarked.

For the 2024 fiscal year, the   and the GRA have set a tax target of GH¢146 billion, representing a 37.7 percent increase from the GH¢106 billion collected in the 2023 fiscal year.

The Quarterly Economic Roundtable aims to bridge the gap between policymakers and academia, promoting research-driven and evidence-based policy formulation.

The inaugural event, themed “Restoring Macroeconomic Stability,” tackled critical issues such as fiscal, debt, and monetary policies.

Source: Norvanreports.com