The Ghana Revenue Authority (GRA) has lauded its transformation agenda for its improved revenue collection, especially the digitalization of Domestic Tax Revenue Division core processes.
According to the GRA, it exceeded its 2021 revenue target by 0.5 percent despite the challenges that businesses continue to face in Ghana and across the world.
The revenue collection target for the Authority for 2021 was GH₵57.055 billion but the GRA indicated that the actual collection came to GH₵57.32 billion. In nominal terms, the GRA noted that it exceeded its 2021 target by GH₵265.39 million.
This performance, according to the GRA, represents a growth rate of 26.3% over the 2020 revenue and is the highest annual growth in the last ten (10) years. The GRA disclosed that the country’s tax to GDP ratio in 2021 was 13.4 percent, the highest recorded in the last five years.
Meanwhile, the tax Buoyancy which measures the efficiency and responsiveness of Tax Revenue mobilization to Growth in the Economy also improved to 1.7 in 2021 from 0.3 percent in 2020. Data available showed that the current tax buoyancy rate is the highest recorded since 2017. Studies have shown that tax buoyancy responds to the business cycle and can also be a good output stabilizer in the short run.
“The achievement of the target can be attributed to a number of initiatives under the GRA Transformation Agenda. Key amongst these initiatives are the digitalization of Domestic Tax Revenue Division core processes. In addition, the Cashless Policy which allows taxpayers to pay taxes online and at the banks and the taxpayers portal which allows taxpayers to file returns in the comfort of their homes, have brought transparency and efficiency into tax administration”.
GRA
Performance of the tax divisions
A further breakdown showed that the Domestic Tax Revenue Division collected GH₵41.23 billion last year. This performance is an improvement of 25.6% over the 2020 revenue performance, the GRA disclosed. Similarly, the Customs Division collected an amount of GH₵16.08 billion representing 26.8% over the 2020 performance.
In recent years, revenue targets have been consistently reviewed downwards to reflect prevailing economic conditions. However, the GRA noted that in 2021, there was no downward revision in the revenue target during the mid-year review.
Even though the revenue target for 2021 was revised downward, Finance Minister, Ken Ofori-Atta disclosed that government did not revise the target for GRA as the authority gave the assurance even before the end of the year that it was going to meet its target.
In the Customs Division, the GRA noted that the introduction of Integrated Customs Management Systems (ICUMS) has streamlined Customs Operations and helped increase tax collection at the country’s entry points. The Authority also praised the workers for their commitment to improving the country’s revenue collection.
“The introduction of downstream petroleum monitoring activities has also contributed to the increase in Customs revenue collection. Most importantly, these achievements in 2021 are also due to an improved and positive work attitude by the Management and Staff of the Authority. Their commitment to this performance cannot be understated”.
GRA
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