The Ghana Revenue Authority (GRA), led by Commissioner-General, Julie Essiam, has announced a new compliance measure targeting the foreign income of resident Ghanaians.
This initiative is set to replace the suspended Value Added Tax (VAT) on electricity and aims to generate sustainable revenue beyond 2024.
According to the GRA boss, this measure is not new but has been part of the law for some time, although it has not been implemented effectively.
‘We [GRA] will specifically speak to the measure that is replacing the VAT on electricity. So, the measure that we put in place is a compliance measure on foreign income of resident Ghanaians.
‘This measure is already in the law, as the minister said, so it is not a new measure. The difference is that its implementation and application have not been implemented effectively,’ the GRA Commissioner-General said in her brief remarks at the joint IMF, BoG and Ministry of Finance presser held in Accra on April 13, 2024.
Essiam added that “The GRA, with support from
the Organization for African, Caribbean, and Pacific States (OACD), has refined the processes and structures to ensure effective implementation.
‘So for us to implement this measure, we have, with the aid and assistance of the OACD, gone through sustainable processes and structures to ensure that when we implement this measure, the sustainability of this measure is going to go beyond 2024 in our revenue numbers.
‘So this is the measure that, together with the Government of Ghana and our mother ministry, the Ministry of Finance, is going to take place or is going to replace the VAT on electricity.’
The move comes as part of the government of Ghana’s efforts, in collaboration with the Ministry of Finance, to find a long-term solution to the country’s fiscal needs, especially in revenue mobilization.
Julie Essiam said she was confident that this measure will not only be sustainable but will also credibly replace the projected GHS1.8 billion in revenue target, marking a significant shift in the nation’s tax p
olicy landscape.
Source: Ghana Web
