The Vice President of the Republic of Ghana, Dr. Mahamudu Bawumia has called on the Ghana Revenue Authority to use the linkage between the Ghana Card and Tax Identification Number (TIN) to effectively identify and collect taxes from individuals and businesses in the country.
Addressing participants at the 57th Congregation at the Kwame Nkrumah University of Science and Technology (KNUST) on Friday, the Vice President indicated that the linking of the Ghana Card number and the Tax Identification Number would help the Ghana Revenue Authority to identify citizens and businesses in the country who pays and not pay their taxes.
The Vice President Dr Mahamudu Bawumia who is also the flagbearer for the New Patriotic Party for the 2024 general elections revealed that the Ghana Revenue Authority already has the Ghana Card and the Tin Number data, hence it must utilize such data in its daily operation.
“It is a very lazy approach to go and keep looking for taxes from people who are paying taxes already when you could look at those who are not paying taxes who are the vast majority. They should be the ones that GRA should be focusing on and we would get more taxes from the vast majority”.
Vice President Dr Mahamudu Bawumia
The Vice President, Dr Mahamudu Bawumia further asserted that the use of the Ghana Card and the Tin Number system by the Ghana Revenue Authority would be the most effective and efficient way of collecting taxes from all citizens in the country particularly the many citizens who do not render their tax obligations.
Again, Dr Mahamudu Bawumia urged the Ghana Revenue Authority to introduce a bonus system which should be based on the new taxpayers officers of the Ghana Revenue Authority can bring depending on the amount of excess revenues it receives after spending.
Government To Introduce A Credit Scoring System Through The Ghana Card
Moreover, the Vice President, Dr. Bawumia indicated that beginning next year, as a result of the Ghana card, the Government of Ghana would introduce a ‘credit scoring system’ which is used to reward citizens who can settle their loan payments on time.
According to the Vice President people who diligently pay their loans on time would be possibly offered low interest rates and be given more access to loans in the country.
Additionally, the Vice President, Dr Mahamudu Bawumia announced that starting from December 2023, the government has initiated steps to provide Ghana Card Number to every child born in the country.
Meanwhile, Dr. Adu Anane-Antwi the former Director of the Securities and Exchange Commission (SEC) has urged the government to impose tax on interest accrued from Treasury Bills and Bonds to cushion the country’s financial regime and to help address the government’s limited access to financing.
His suggestion comes following the unfulfilled expectations of businesses regarding tax elimination in the 2024 budget. Dr Anane-Antwi emphasized that such a step from the government would ensure fairness and equity in taxing investor returns in the country.
According to Dr Anane-Antwi, the introduction of taxes on interest on Treasury bills and Bonds by the government will generate significant revenue for the country.
“The wages for an investor in financial securities is either dividends or interest. It is not right nor sound for the government to continue to tax dividends and not tax people who earn interest. A level playing field should be created. Government should start taxing interest income since dividend income is taxed”
Dr Adu Anane-Antwi
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