The Commissioner-General of the Ghana Revenue Authority, Anthony Kwasi Sarpong is positive the deployment of fiscal electronic devices at shops under the new Value Added Tax reforms implementation would facilitate revenue mobilization.
Parliament recently approved the Fiscal Electronic Device Act requiring businesses to install certified electronic fiscal devices (EFDs) at their points of sale.
These devices will record every transaction, calculate VAT automatically, and report directly to the GRA in real-time, aimed at closing the compliance gap in VAT performance, which stands at approximately 40% currently.
The Board of the Ghana Revenue Authority paid their first courtesy visit to the Asantehene at the Manhyia Palace, after nearly a year of their inauguration, to introduce and update Otumfuo Osei Tutu II on their mandates and achievements in the last year.
Through strategic effort, the GRA mobilised over 80 million cedis in the first half of the year, with an end-of-year target of over 170 million cedis.
Commending the board, the Asantehene, Otumfuo Osei Tutu II, urged the expansion of the tax net to include the informal sector while charging the board to avoid revenue leakages.
“Do well to collect taxes from the areas we haven’t focused much on. We have a lot of people who have money but fail to pay their taxes. If we make them understand the importance of taxes, they will pay,” he noted.
“Also, do not be selfish with your work. Think and work collaboratively for Ghana. If you have workers or managers who pocket some taxes, let’s be watchful of them,” he added.
The GRA is set to roll out the reformed Value Added Tax (VAT) system, which would see shops install fiscal electronic devices for all taxable transactions.
The new system is expected to kickstart in the coming months in the mid-size shops and supermarkets across the country.
Commissioner-General of the GRA, Anthony Sarpong, is optimistic of increased revenue mobilisation through the yet-to-be rolled out initiative.
“For every 10 businesses that exist, only 4 pay VAT. Within the remainder, some of them are not charging, and also those businesses charging aren’t paying remittances. The new VAT reform will be a game changer. We believe that when this is successful, it will rake in more revenue,” he said.
Meanwhile, Board Chair of GRA, George Kweku Ricketts-Hagan, highlighted the benefits of new taxation systems, including the Publican AI, despite pushbacks from the business community.
“Earlier there were noises from people who couldn’t comprehend the system. But now that has subsided. People are now beginning to understand the system. This would help with revenue collection for national development,” he noted.
