Despite the fact that the informal sector makes up 70 percent of the national economy, only about two per cent are contributing to tax payments according to the Commissioner-General of the Ghana Revenue Authority, Mr Emmanuel Kofi Nti.
Speaking at the launch of the 2018 National Tax Campaign In Accra on 23rd October 2018, Mr. Nti described the two per cent tax payment rate of the informal sector as unacceptable. He said that the Ghana Revenue Authority believes in honoring of tax payments as a form of contribution to the national agenda.
He said that this year's launch is a follow up on the 2017 campaign hence the use of the same theme " Our Taxes, Our Future". He pointed out that the previous campaign was aimed at changing people's attitudes towards taxes. However, the two month long period was realistically inadequate to achieve the desired results.
The 2018 campaign therefore, he said, will help to significantly and positively change people's attitudes to expand the tax net and improve voluntary compliance. It will also focus on deepening and sustaining the conversations that arose from the previous launch while recognizing the importance and benefits of tax payments.
"I believe we all recognize the fact that without the contributions of the citizenry in the form of tax payments, the good intentions of the government will come to naught" he stated.
He urged income earning citizens to voluntarily undertake the four important obligations namely; registering with the tax administration, paying taxes on due dates, filing returns on due dates and making full disclosure of transactions. The GRA will collaborate with the National
Commission for Civic Education, the Information Services Department and the media to engage in activities such as TV and radio discussions, community outreach and engagements, social media engagements and more.
Mr Nti urged Ghanaians to register existing unregistered and new businesses, settle or arrange to settle outstanding tax liabilities, increase voluntary compliance in terms of tax payments and filing of returns, total compliance of especially tax obligations with the public insisting on their VAT invoices and provision of relevant information to GRA about unknown and hidden businesses.
Reading a speech on behalf of the Minister of Finance, Mr Ken Ofori-Atta, the Deputy Minister, Mrs Abena Osei Asare said that the campaign emphasizes the importance of tax payments and also recognizes the importance GRA attaches to educating the public on their civic obligations.
He said that Ghana has about 6 million people on the tax net but only 1.5 million are paying taxes regularly with only 200,000 constituting the informal sector.
"The gap must be bridged at all cost, and so we must do everything possible to change this situation if we are to make any headway in our quest for development and also move Ghana Beyond Aid" he said in the statement.
He urged the GRA to remove any barriers and improve on the ease of paying taxes by citizens and in so doing widen the tax net. He urged the NCCE, the media and other civic organisations to help the GRA reach out to the population to encourage them to pay their taxes.
Government, he said, will also help the GRA to hold tax evaders accountable.
"An increased revenue performance and contribution from the informal sector will in no doubt help government to bring improved investments in infrastructure, as well as provide funding for the many social intervention programs such as the Free SHS, the School Feeding Program,
the Nation Builders Corps (NABCO) and the Livelihood Empowerment Against Poverty (LEAP)" he said.
The Chairman for the event, Mr Nii Ayi Aryeetey, President of the West Africa Union of Tax Institutions said that our future is compromised if we cannot mobilize the needed taxes. He said that as a country classified as middle income, Ghana cannot continue to rely on donor support and must, therefore, consider other ways of raising domestic revenue.
He said that the GRA in the past few months, has reached out to help people meet their tax
obligations in a mutually beneficial manner. He said "we must ensure we continue with this approach in order to realize the Ghana Beyond Aid agenda".
He said that those in the informal sector must also honor their civic responsibilities to help fund flagship programs like the Free Senior High School. Present at the event were some traditional leaders, Mr. Kwasi Gyimah-Asante - Commissioner, Domestic Tax Revenue Division; Mr. Isaac Crentsil - Commissioner, Customs Division; Ms. Josephine Nkrumah, Chairman
of the NCCE and Acting Director of the Information Services Department (ISD), Ms Elizabeth Efua Essel. Also present were representatives from the Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ), the NCCE, Department for International Development, various trade associations and the media.