The Ghana Revenue Authority (GRA) has revealed plans to roll out a taxpayer identification system that will identify non-taxpayers in the country.
This is part of the national tax campaign by the GRA aimed at ensuring all taxes are duly paid by both the formal and informal sectors.
It is also part of moves by the government to ensure that all taxpayers comply with rules and regulations.
Acting Commissioner General of the Ghana Revenue Authority, Mr. Emmanuel Kofi Nti also tells Citi Business News the system will expose tax evaders.
“We are developing a system such that I can key your name and if you have paid your tax in any year, it will be known. Central to the issue is the taxpayer identification, that is being able to go out there to identify the taxpayers and that is where we want to drive to. We want to be able to build our database such that the working people those who generate income will be in our tax net and we can point to them and their activities so that by that we are able to go after tax defaulters,” he explained.
Meanwhile, Mr. Nti argues that the informal sector which includes hairdressers and laborers are his main focus in dealing with the issue of non-tax compliance.
He insists the informal sector contributes only below two percent of taxes accrued and this is causing huge financial loss for the country.
“For a long time, the contribution of the informal sector to total tax revenue has remained below five percent. In actual fact, when I did the testing of the numbers, what we are getting from the informal sector is below two percent” he clarified.
He is however hopeful the new system will ensure all workers from both the formal and informal sector are roped into the tax net.
“But what I want to assure you is that we are moving towards an era where every taxpayer, potential income earner in Ghana will be in the tax net and we can be able to state how much income we obtain. For now, we want everyone to participate” he stated.
Meanwhile, Finance Minister Ken Ofori Atta who lauded the move is optimistic the system will bring in more funds to ensure the success of Government’s projects such as the Free Senior High School Policy.
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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana