Bawumia, Ministers File Tax Returns
• Urge Ghanaians To Pay Taxes
The Vice President, Dr. Mahamudu Bawumia, last Friday filed his tax returns at the head office of the Ghana Revenue Authority (GRA) with a call on Ghanaians to pay taxes in order to develop Ghana.
The Vice President was accompanied by the Finance Minister Ken Ofori Atta, Senior Minister, Yaw Osarfo Marfo and other cabinet ministers who also used the opportunity to file their tax returns for the first quarter of the year.
Dr. Bawumia said the “Ghana Beyond Aid” agenda can only be achieved if the country improves its tax mobilization.
“All over the world, taxation is the main tool countries rely on to mobilize revenue to develop their economies and provide services to their people. Perhaps least talked about and also less understood by many of us is that whatever the advanced countries send to us as aid is the result of their own ability to mobilize domestic resources. What we take for granted as aid resources, is the result of their capacity to raise taxes, especially income tax. As we embark on this journey of Ghana Beyond Aid, it is imperative for us to take rigorous and decisive steps to raise enough income tax.”
The Vice President made the call for greater tax compliance when he launched the 2018 “Tax and Good Governance Week” organized by the Ghana Revenue Authority in Accra, on last Friday.
Vice President Bawumia bemoaned the poor tax paying culture in the country, indicating that though potential employees in the country are estimated at 6 million individuals, only about 1.5 million persons are registered with the Ghana Revenue Authority and pay their Pay As You Earn (PAYE).
“In fact, Ghana ranks below Cote d’Ivoire, Kenya, Senegal, Cape Verde and Swaziland in terms of the contribution of payroll tax to GDP. In 2015/2016 fiscal year, PAYE contributed about 15% of total domestic revenue, the self-employed about 1.1% and corporate tax about 19%. The combined contribution of about 35% is significantly below Singapore’s 50%, South Africa’s 54%, Canada’s 58% and Denmark’s 60%.”
“Let me reiterate that filing of tax returns, in addition to being the civic responsibility of every Ghanaian, is also a requirement by law. The Income Tax Act 2015 (Act 896) and the Revenue Administration Act, 2016 (Act 915) mandate every eligible person to file an income tax return with the Commissioner-General not later than four months after the end of each year of assessment.
“This campaign is therefore meant to remind and educate all categories of persons on this civic requirement and encourage the general public to visit any of the offices of the Ghana Revenue Authority across the country and file their tax returns if they haven’t already done so before the end of April, 2018.”