We need to rationalize tax exemption regime – Consultant
Tax is a big revenue generator for governments
Tax Consultant and lecturer, William Owusu Demetia, has re-emphasized the need for the government to revise its tax exemption approach.
Read full articleAccording to him, a review of the current regime would help government rope in more revenue to commit to projects.
Speaking to Joy News, the tax consultant said raised concerns on how a new exemption regime is good for the country.
“We need to be able to rationalize our tax exemption regime. The tax exemption regime over here talks about tax concessions for individuals and companies in particular industries and areas, talks about exemptions we give on projects; these includes duties and income taxes, VAT, among others. These are things that we need to be able to rationalize”.
He further stated that, “we must find out those that are important and give the necessary referencing tools so that they are not abused and discontinue those that have outlived their purpose and are serving as a leaking pot and do away with them. There’s an exemption bill that has been in parliament and has not seen the light of day. We need to get to work so that we can be able to save enough revenue being given away as a result of waivers and concessions.”
The tax consultant also re-emphasized the need for the government to digitize all tax-related activities to reduce tax avoidance and under declaration of tax.
He believes the use of electronic payment systems for cashless transactions will help government rake in the needed revenue and ensure tax compliance.
Earlier this week, the Commissioner-General for the Ghana Revenue Authority (GRA), Reverend Ammishaddai Owusu-Amoah said the government’s decision to replace the Taxpayer Identification Number (TIN) of individuals with their Ghana Card number is a step in the right direction, especially for the banks.
