Gov’t urged to implement fiscal electronic devices to meet revenue targets
The government may not be able to meet the full target set for projected revenue if it fails to deploy recommended fiscal electronic devices.
These devices are expected to help the revenue collection agencies like the Ghana Revenue Authority (GRA) to assess taxpayers on revenue and Value Added Tax (VAT) by cutting down the human connection to the assessment of prospective taxpayers.
Tax Expert and Senior Associate at Ali-Nakyea & Associates, William Kofi Owusu Demitia, has called on the Finance Minister, Ken Ofori-Atta, to take immediate steps to revise its tax laws which should include the deployment of the fiscal electronic devices ahead of the midyear review and supplementary budget.
”If these devices are to be deployed, this will bring us revenue. [Government’s revenue] projections would not be met because we have not deployed such devices that we need to use to be able to,” the Tax Expert said.
He also urged the Finance Ministry to implement all the policies it said it will implement to shore up revenue for the economy.
Ghana has a long history of revenue shortfalls.
A Ministry of Finance report, titled: ‘Fiscal Risk Statement 2018’ showed that of the past 13 years, 11 years recorded lower revenue outcomes than budgeted.
It revealed further that the period registered an average forecast error of negative 10%, implying that about 90% of forecast tax revenue was likely to be collected.
Over the last three years, domestic revenue collections have been fewer than planned, with last year’s revenue of GH¢46.5 billion being almost 4% below the budget target.