Business

domestic tax receipts heavily skewed – Fin. Minister

  • …Greater Accra contributes some 90%

The Greater Accra Region has contributed approximately 90 percent of the domestic tax receipts to the state between the beginning of 2017 and mid-2021.  The next three highest contributors – Ashanti, Western and Eastern – regions together, contribute barely 3 percent of domestic taxes with 1.29 percent, 0.97 percent and 0.41 percent respectively.

In descending order is the Central Region comes in fifth with 0.25 percent and Brong Ahafo region sixth, with 0.2 percent. Volta Region (0.11 percent), Northern Region (0.25 percent), Upper East region (0.06 percent), and Upper West region (0.04 percent), complete the list, which captures data beginning before the formation of new administrative regions in 2018.

This came to light when the Budget Statement and Economic Policy for the 2022 Financial Year – which had as its theme ‘Building a Sustainable Entrepreneurial Nation: Fiscal Consolidation and Job Creation’ – was presented by the Minister of Finance, Ken Ofori-Atta.

Offering further insight, the minister revealed that only 45, 109 entities are registered as corporate taxpayers with a grand total of 54,364 persons being registered as self-employed taxpayers as of August 2021.

According to Mr. Ofori-Atta, it is neither prudent nor equitable for the revenue burden of the nation to be borne by a few people irrespective of their geography or sector. “We cannot, therefore, as a nation continue to depend on only 8.2 percent of our citizens to carry the burden of 30.8 million people. This is unsustainable and defeats all the tenets of economic prudence and moral justice,” he explained.

Property rate

“Our resolve to use revenue policy to support local industry and generate the desired environment for growth has not waned. In the coming year, Government will introduce measures that will revamp industry and make their products competitive in both the local and international markets,” Mr. Ofori-Atta said, as he announced plans to institute a common platform for property rate collection and administration.

He stressed that property rates have the potential to increase revenue mobilisation for Metropolitan, Municipal and District Assemblies (MMDAs) and provide resources for the provision of basic infrastructure.

“Property rate assessment and collection pose a challenge to most MMDAs and are fraught with inefficiencies. Government, through the Ghana Revenue Authority will from January 2022 assist the MMDAs to implement a common platform for property rate administration to enhance property rate collections and its accountability,” he said.

To ensure cost recovery by the government in providing the infrastructure for the collection of the rate, a sharing ratio will be agreed with the respective Assemblies, he added.

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