The Ghana Revenue Authority (GRA) and the Gaming Commission have signed a Memorandum of Understanding to improve revenue collection from the gaming sector.
Speaking at the ceremony, Rev. Ammishaddai Owusu-Amoah, Commissioner-General of GRA stated that the collaboration is a giant step towards harnessing revenue from all taxable sources to help the country undertake its developmental projects .
Rev. Ammishaddai Owusu-Amoah, Commissioner-General of GRA
“It is critical to have this agreement because it is one of the means of expanding the tax net necessary to make the country sustainable in the financing of its developmental agenda”.
The Commissioner-General noted that the Authority has developed an effective software system to collect taxes electronically since most games of chance have moved from the manual to digital platforms. As a result, he indicated that the two agencies would sensitize operators of the games of chance on regular basis on the need to pay their taxes.
Aim of the sensitization
The sensitization, according to Rev. Ammishaddai Owusu-Amoah, is aimed at making tax compliance friendlier and ensure fairness, transparency, efficiency and convenience in the system. Consequently, the Commissioner-General urged operators to support the government by paying their taxes.
Also, he praised the Commission for its commitment and expressed hope that the collaboration would make a significant impact on the country’s revenue mobilization drive.
On his part, Mr. Peter Mireku, the Gaming Commissioner, assured the Authority of the Commission’s support of providing reliable data on operators to raise the needed revenue. Mr. Mireku is hopeful that the partnership would increase revenue mobilization and meet the target set by government.
Tax Court
Meanwhile, as part of measures to improve revenue collection in the country, the Finance Minister, Ken Ofori-Atta, highlighted in the 2021 Mid-Year Budget that the GRA will fully activate the Prosecution Unit to bring in line recalcitrant taxpayers and other persons who will infringe the revenue laws in order to drive compliance and reduce tax evasion and tax fraud.
According to Mr. Ofori-Atta, the establishment of the tax courts this year will ensure the speedy trial of tax cases and the necessary punitive measures handed out where necessary.
“The operationalization of the Independent Tax Appeals Board on the other hand, will afford taxpayers the opportunity for redress where taxpayers are not satisfied with the actions of the revenue authority. Government objective is not to hound taxpayers, but rather to ensure that, we all pay our fair share of taxes”.
Mr. Ofori-Atta
Furthermore, as part of Government’s digitalization agenda, Mr. Ofori-Atta indicated that technology will be applied at all levels to monitor and identify revenue sources (both tax and non-tax); safeguard revenue collections by eliminating the collection of physical cash and tracking non-compliant tax payers.
Mr. Ofori-Atta added that it will also enable tax officials widen the tax net by bringing in potential taxpayers in the informal sector, improve risk management mechanisms, and influence the design of tax policies.
Potential of Gaming in Revenue mobilization
Gaming has become a major income earner all across the globe and a significant source of government revenue. It is estimated that Ghana loses over GH¢300 million annually in revenue due to leakages in the sector. In March 2021, the government stated that it will soon consult with stakeholders to formulate a comprehensive policy to improve revenue mobilization from this source.
However, in the interim, the government promises to introduce state of the art technology to track all online gaming transactions and apply current laws to ensure the sector contributes its fair share of revenue to the national development effort. Commission Commission Commission
READ ALSO: Policies cannot be reviewed in 3 months- Dr Sarkodie on Budget Review
