The Ghana Revenue Authority (GRA) in collaboration with the National Identification Authority (NIA) has set up 14 offices across the country to synchronize the Tax Identification Numbers (TINs) with the Ghana Card, effective today, April 1, 2021.
This is in line with government’s policy to replace the Tax Identification Number (TIN) with the Personal Identification Number (PIN) on the Ghana Card. The Authority hopes to finish with the synchronization process by the end of December 2021. Thus, the use of the Ghana Card for transactions will fully begin in January 2022.
Rev Ammishaddai Owusu-Amoah, Commissioner-General of GRA said the initiative formed part of efforts to identify and rope in more eligible taxpayers. In particular, those in the informal sector and to enable organizations to easily share important data with the Authority.
Data from the GRA indicates that the informal sector constitutes about 70% of the economy. However, only 2% pay income tax.
According to NIA, the co-location strategy will afford Ghanaians aged 15 years and above who have not yet registered for the Ghana Card the opportunity to do so. The registration is free for Ghanaians but foreigners will have to pay a fee.
Meanwhile, the NIA says it will issue cards to persons who have registered but have not received their cards. They will issue such cards following the establishment of permanent offices in regional and district capitals, effective 1st June 2021.
The use of Ghana Card numbers as tax identification numbers is expected to increase the number of taxpayers from three million to 15.5 million.
Measures to increase revenue generation
GRA has announced measures to enhance revenue generation in 2021. These measures are to widen and increase the tax net to cover the informal sector; increase the domestic and external VAT yield; and develop mechanisms for taxation of emerging e-commerce and high net worth individuals.
Also, GRA will improve the cost effectiveness and efficiency of administration through staff rationalization; and adopt management information and data management systems. They will go digital and use technology to transform revenue administration. Specifically, the implementation of TRIPS (Trade-related Aspects of Intellectual Property Rights) will ensure efficient and effective revenue administration services.
The Authority announced the measures at a meeting with the Finance Committee of Parliament to consider the estimates for 2021.
GRA had projected to take in total non-oil tax revenue (Gross) of GH¢57,055.57 million for the year ending 31st December, 2021. This is as against the 2020 provisional outturn (actual lodgement) of GH¢45,154.38 million. The 2021 expenditure budget of GRA would be funded from the statutory revenue retention to be derived from a projected revenue target of GH¢57,055.57 million.
At an expenditure budget of GH¢1,471.89 million, the retention level granted for 2021 comes to approximately 2.58% of tax revenue.
