This follows reports suggesting that the authority had taken enforcement action against him.

In a press statement issued on Thursday, March 27, 2025, the GRA explained that while a tax assessment of GH₵30 million has been raised against Quaye, no enforcement measures—such as freezing his accounts—have been implemented.

“The authority has issued an assessment on him relating to his income taxes, but we have not commenced any enforcement action such as freezing his bank accounts,” the statement read.

The GRA urged the public to disregard the false reports and emphasized that it adheres to due process in tax matters. It further clarified that enforcement actions, including account garnishments, are only taken when taxpayers fail to cooperate after an assessment has been raised.

The authority also encouraged all eligible taxpayers to voluntarily disclose their incomes and fulfill their tax obligations to avoid penalties, interest, and legal consequences.

Meanwhile, the GRA reaffirmed its commitment to fairness, integrity, and transparency in tax administration, assuring the public that all compliance matters are handled in accordance with established procedures.

Background

Mr. Quaye recently marked his 40th birthday with a lavish celebration at the Black Star Square in Accra, drawing top local and international dignitaries, business elites, and entertainment figures.

The extravagant event, dubbed #RNAQ40, was attended by some of Ghana’s most influential personalities, including Dr. Osei Kwame Despite and Dr. Ernest Ofori Sarpong, underscoring Quaye’s strong ties to the nation’s business and social circles.

Also present were government officials, industry leaders, and prominent figures from the international business community, all gathered to celebrate his achievements over the years.

The event featured electrifying performances from Nigeria’s Davido and Ghana’s Sarkodie, while Stonebwoy’s Afro-dancehall energy kept the audience engaged throughout the night.

Speaking to Joy Business after introducing the new Commissioner of Customs, Brigadier General Glover Ashong Annan, to officials at the Tema Sector Command, Mr. Sarpong assured that the GRA will fully implement Parliament’s decision to abolish the levies.

“We’re an implementing institution, and once the law has been passed, we will take it off. Our President has indicated his commitment to this, and through the Minister, it has been done. E-Levy and betting tax have been abolished along with other taxes presented by the Minister on behalf of the President in Parliament,” he stated.

He added that the GRA would swiftly update its compliance systems to ensure Ghanaians benefit from the tax reliefs.

At a brief ceremony to welcome the new Customs Commissioner, outgoing Commissioner Brigadier General Ziblim Ayorongo urged officers to give their full support to Brigadier General Annan in executing the President’s mandate.

Brigadier General Annan pledged to continue effective policies to help meet the country’s revenue targets.

The delegation later visited the Tema Oil Refinery Command at the Tema Industrial Area before returning to Accra.

According to the acting Commissioner-General of the GRA, Anthony Kwasi Sarpong, the initiative aims to boost domestic revenue collection to support government expenditure.

Speaking to JoyBusiness during a tour of key tax centres and Customs collection points, Mr. Sarpong urged officials to work toward achieving at least GH₵11 billion monthly, constituting about 5% of the annual target.

“Based on your performance last year, I will be expecting you to do a minimum of GH₵11 billion, which will constitute about 5% of our working target, which is GH₵220 billion,” he told GRA officials.

“I have every belief that you will achieve that. Our work is also to ensure that we give you some of the logistics and support so that you can have peace of mind and focus on the work,” he charged.

During a visit to the Tema Port Collection point, the Sector Commander, Assistant Commissioner Thereza Potarkey, assured Mr. Sarpong of efforts to surpass the revenue target. She, however, called for additional resources to enhance operations.

“Based on the fact that the Tema Collection is responsible for generating almost all of Customs revenue, I must respectfully state that the Collection needs to be better resourced. I don’t intend to bore you with a myriad of problems, but I shall mention a few challenges we face that hinder our operations,” she noted.

She highlighted infrastructure deficits as a major concern.

“Our current working environment needs to be upgraded to provide a good working environment for our staff and the general public. This upgrade will not only enhance our operational efficiency but also improve the overall experience for our clients,” she added.

The visit allowed Mr. Sarpong to engage with tax officers and discuss strategies to meet the GH₵220 billion revenue target.

The team also visited the management of MPS Port Services, where key concerns were raised for government intervention.

It is not immediately known to JoySports whether the mattresses were intended for the revamped Ghanaman Soccer Centre of Excellence or for another purpose.

Last week, JoySports reported that some of the buses imported by the football governing body for GHC 5,175,000 and cleared by Freightgistics Ghana Company Ltd. had yet to be registered due to the unavailability of documentation, according to some clubs.

The report indicated that the “used Hyundai County bus” arrived with other items in the container, which could not be readily identified.

It has now emerged that these additional imported goods were medium-sized and student mattresses.

JoySports’ Muftawu Nabila Abdulai had written to the GRA requesting details of the container’s contents.

However, the response was received after the story had been published, so these details were not incorporated into the initial report.

The GRA explained that the container, which delivered the used Hyundai County bus (black matte), contained 25 packs of medium-sized mattresses and 15 packs of student mattresses.

In total, the Ghana FA imported 40 mattresses in that specific container.

The cost, insurance, and freight (CIF) value of the bus was GHC 212,783.08, while the 25 medium-sized mattresses were valued at GHC 32,597.50, and the 15 packs of student mattresses at GHC 14,027.29.

As stated in the March 4, 2025, publication, the total duty on the bus was GHC 72,116.10.

Regarding the mattresses, per the GRA’s breakdown, the duty on the 25 medium-sized mattresses was GHC 17,000.86, while the duty on the 15 student mattresses was GHC 7,311.63.

“[Meanwhile]… the total duty on the container’s contents amounts to GHC 96,972.46.”

The total amount spent on the container, including the CIF value and duty, is GHC 356,380.33.

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The truck, registered AS 2103-W, was driven by one Ibrahim Fatawu. The smuggled cocoa beans were concealed in gallons, an attempt to evade Ghana’s regulated pricing system and sell them in Togo.

Director of Special Services at COCOBOD, Charles Amenyaglo, confirmed the interception, stating that it highlights the persistence of cocoa smuggling.

“This interception proves that cocoa smuggling remains a serious issue in Ghana. We are intensifying efforts to track down these illegal activities and protect our farmers and the economy,” he said.

The seized consignment is currently in the custody of COCOBOD and GRA, pending further investigations.

The COCOBOD Head of Security reiterated the Board’s commitment to safeguarding Ghana’s cocoa industry.

“We remain vigilant and will continue working with security agencies to prevent cocoa smuggling, which threatens the livelihoods of our hardworking farmers and the economy as a whole,” he emphasized.

Meanwhile, authorities have warned that those involved in cocoa smuggling will face strict legal consequences.

This latest interception reinforces COCOBOD and the government’s resolve to clamp down on illicit cocoa trade across the country.

COCOBOD has urged the public to report any suspicious cocoa-related activities to ensure Ghana’s prized commodity remains within regulated trade channels.

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Speaking at the recent Downstream Petroleum Dialogue organized by COMAC, Mr. Kumi stressed that while the chamber supports an effective tax collection system, it will not tolerate disruptions such as system failures that negatively impact business operations.

“We don’t have any problem if the system is making tax collection efficient…we support all that. But at the end of the day, we expect our members to have a trouble-free experience, with no bottlenecks in placing orders,” he stated.

ICUMS is a customs management and port community platform designed to process documents and payments through a single window, replacing multiple vendors with a single service provider.

Mr. Kumi cautioned that persistent technical challenges could lead to frustration among industry players.

“The system should not be implemented in a way that negatively affects our operations. That’s all we are saying. We are calling on the GRA and the Ghana Ports and Harbours Authority to resolve any bottlenecks permanently. We have tolerated these hiccups for the past year, but going forward, we may not have the patience to continue tolerating them,” he warned.

In 2020, the GRA announced that all transactions related to import and export manifests must be processed through either ICUMS or the Ghana Customs Management System at the Port of Tema and all other entry points.

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The aggrieved group, reportedly unhappy with Mr. Sarpong’s appointment, argued that he was not part of the NDC’s struggles during its time in opposition and should not be allowed to hold such a significant position under the current administration.

The group also alleged that Mr. Sarpong has affiliations with the opposition New Patriotic Party (NPP), further fueling their dissatisfaction.

Following a heated confrontation with security personnel, the group eventually agreed to leave the premises but vowed to return if Mr. Sarpong remains in office.

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Data seen by JOYBUSINESS shows that the GRA mobilized GH₵7.5 billion more than the GH₵145.9 billion targeted for 2024, representing 5.3 percent increase.

The performance, according to the GRA, represents a nominal growth of 35 percent compared to 2023.

The addition of Sanitation Debt Recovery Levy, Energy Sector Debt, Sanitation and Pollution Levy, put the total revenue at GH₵157. 9 billion.

Drivers of the 2024 revenue collection

The component of domestic revenue grew by 31.6 percent, while Customs grew by 47.0 percent.

Most of the direct tax handles mobilized more than what was anticipated by the GRA.

For instance, the GRA was hoping to get GH₵30 billion from Corporate Tax. The authority however ended 2024 collecting GH₵38 billion.

Mineral Royalty brought in GH₵5.2 billion as against the target of GH₵3 billion.

Airport tax brought in GH₵1.6 as against a target of GH₵1.3 billion.

Persons close to the GRA have told JOYBUSINESS that apart from some tax handles doing very well, the authority’s quest to press hard on compliance also helped in meeting the target for 2024.

Performance of e-levy and Covid-19 levy

The GRA was hoping to collect GH₵2.1 billion for e-levy in 2024. However, it ended up realizing GH₵2 billion.

For the COVID-19 Heath Recovery Levy (Flat Rate). The GRA was targeted GH₵128 million but got GH₵86 million.

For the COVID-19 Heath Recovery Levy (Standard Rate), the GRA got GH₵2.7 billion as against GH₵4.2 billion.

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He highlighted the GRA’s ongoing efforts to enhance its reputation and boost revenue collection, urging the media to support these efforts by exposing GRA officers found with credible evidence of misconduct for disciplinary action.

Brigadier General Ayarroga made these remarks during a media forum in Sunyani on Thursday, October 24, following a three-day working tour across the Bono, Bono East, and Ahafo regions.

During the tour, he engaged with staff, inspected facilities, and addressed operational challenges impacting the organization.

Emphasizing that tax revenue is crucial for national development, he encouraged staff to apply effective and transparent practices that assist traders and the business community in fulfilling their tax obligations.

Addressing concerns from the media, the Commissioner reaffirmed that capacity building, discipline, and professionalism remain integral to improving service delivery within the GRA.

Source: Adomonline

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Marking the day in Tema a team of NAS staff took the personnel of the GRA, Custom Division through various skills on Basic Life Support (BLS) techniques.

The program on the theme: “Use Heart for Action” was held for over Sixty staff of the GRA, Customs Division.

The customs officers were taken through Cardio Pulmonary Resuscitation (CPR), Choking Management and Blood Control techniques.

The Deputy Director of Public Relations for the National Ambulance Service, Simmons Yussif Kewura speaking on behalf of their CEO, Prof Ahmed Nuhu Zakariah expressed their gratitude for being allowed to provide this essential service.

He urged them to take the training seriously, regardless of their background or position, because the skills acquired will help them save a life in an emergency.

The Assistant Commissioner (AC) Theresa Potakey sector 2IC at the Tema collection also highlighted the relevance of the training and thanked the National Ambulance Service for this kind of initiative.

Some of the officers who went through the training stated that they have learnt a lot, and it has positioned them well in case the need arises.

The National Ambulance Service is available to train schools, corporate organizations and the general public on Basic Life Support Techniques.

World Heart Day is an important annual event, witnessed every year on 29th September.

The day is celebrated by organizing various activities and awareness events globally to raise awareness about heart disease and its preventive measures to manage cardiovascular diseases.

The events mainly focus on educating people about the signs and symptoms of cardiovascular disease to avoid any further complications and encouraging people to inculcate healthy lifestyles to prevent and control any heart-related ailments.

Source: Alex Treve Quarshie

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According to the two chambers of commerce, the illegal activity threatens the survival of legitimate beverage manufacturers and undermines government revenue through taxation.

In a joint statement, they said some of these beverages are offered for sale without tax stamps and at prices significantly below prevailing market rates, making them accessible only to those who evade necessary customs duties, excise taxes, and other levies.

They lamented that the smuggling of these products raises serious health and safety concerns for consumers.

“The Food and Drugs Authority (FDA) cannot verify the quality of these beverages, as they bypass established health regulatory processes. Authorised dealers and franchisees suffer reputational damage when inferior products are passed off as their own in the market”.

“We urgently call upon the GRA to take decisive action to halt the smuggling of these PET and canned beverages, particularly Coca-Cola products, which are among the most affected. We also urge the FDA, local authorities, and market leaders in major regions such as Accra, Kumasi, Tamale, and Takoradi to act decisively to protect these brands, preserve government revenue, and safeguard employment opportunities within the beverage sector”, they stated.

“Additionally, we entreat the Ministry of Trade and Industry, through the Ghana International Trade Commission (GITC), to address these unfair trade practices. This action is essential to encourage investment in Ghana’s manufacturing sector and ensure a level playing field for all businesses operating within the country”, they opined.

They concluded that, the smuggling of beverages into Ghana not only undermines legitimate businesses and government revenue but also poses risks to consumer health and safety.

They called on all stakeholders to collaborate to combat this issue effectively.

According to the law, withholding agents are required to remit withheld taxes to the Commissioner-General of the Ghana Revenue Authority (GRA) within 15 days after the close of each calendar month.

However, the Auditor-General’s report has uncovered that several Assemblies, including the Atwima Nwabiagya North District, Amansie West District, Bosome Freho District, Banda District, and Wenchi Municipal Assembly, among others, have not adhered to this mandate.

This issue surfaced during the second day of PAC’s hearings in Sunyani, where the Committee reviewed the Auditor-General’s Report on the Management and Utilisation of the District Assemblies Common Fund and other Statutory Funds for the year ending December 31, 2023.

The Committee expressed serious concern over the failure to remit taxes, emphasizing that such lapses could impact the payment of salaries and allowances. PAC urged the Assemblies to immediately cease these illegal practices.

Additionally, the Committee advised the Assemblies to set realistic targets and operate within their budgets, noting that some Assemblies’ Internally Generated Funds (IGF) are inadequate to support the projects they have undertaken.

This shortfall has resulted in delays or the abandonment of these projects, referred to as “legacy projects,” which ultimately increase costs and negatively affect local communities.

PAC further observed that some completed projects have yet to be utilized by the Assemblies.

The Committee also appealed to the Free SHS Secretariat to release funds to Senior High Schools (SHS) to ensure their smooth operation.

Several school heads expressed frustration, revealing that since February 2024, they have received only GH¢9,000 for recurrent expenses, with no additional funds provided since then.

PAC condemned this situation as unacceptable.

Source: Adomonline.com

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Addressing this challenge which has existed for years, the Ghana Revenue Authority is initiating programmes and devising strategies to encourage payment of tax.

Accra East Area Director of the Domestic Tax Revenue Division of the Ghana Revenue Authority, Joseph Asare, disclosed at a sensitisation event at Tema.

“As the Commissioner General said we’re partnering with civil society organisations, religious bodies, the Chief Imam among other opinion leaders and we at the local level are getting closer to the associations, market women, clubs, and the rest”.

“By getting closer to them, it will enable us to take concerns and feedback and address them appropriately,” he said.

Mr. Asare further added that as a way of encouraging payment GRA has introduced online payment, E-invoicing and others to ensure convenience and compliance.

“You will be given the Commissioner General’s invoice when you visit the shops which is part of the innovations”.

At the event, Joy Business noted that one of the areas of concern was the slight confusion between levies and tax as some traders insisted there was no point paying both.

On this, Joseph Asare, clarified that levies or tolls paid are meant for the day-to-day management of the respective assemblies but income tax and other forms of taxes are paid to central government for national development.

“For instance, drivers pay booking fee after loading in Tema and will do same after reaching Kumasi and loading there too. We have advised the market heads to make available people we can train on tax obligations to serve as trainers,” he stated.

He encouraged the traders to access the service through short code *22#.

Office Manager, Taxpayer Service Centre for Tema Community 1, Lydia Owusu Banahene, pointed out the education was really needed as it enabled them to explain modified taxation to the traders.

She said as a way of cushioning taxpayers when COVID-19 struck, payment was suspended and returning to pre-covid in terms of payment seems new to some traders.

Vice chair of the Tema Central market, Philip Kyei encouraged all traders to fulfil their tax obligation to help develop the country.

“How do you expect the government to build schools, road, and address other challenges if you don’t pay tax. I will urge GRA to reach all corners with the education to ensure compliance”.

Letitia Adjei who runs a convenience shop is ready to pay tax but is unhappy over deplorable network in areas including Washington in the Kpone-Katamanso municipality.

She also expressed worry over the number of fees being paid to Tema Metropolitan Assembly which negatively impacts business.

According to her, GRA has deferred this year’s payment to next year.

The event was in two parts, tax education and health screening at Community One lorry terminal.

The new tax regime, which is expected to be implemented by 2025, is aimed at widening the country’s tax base, to include the informal sector in tax compliance.

Kumasi Area Director of the GRA, Agnes Akosua Boateng, says the new system will simplify tax assessment and reduce compliance costs.

“We want to simplify our tax system so that everybody will be captured. We are expecting to bring on board 2 million people. We want to widen the tax net,” she said.

The GRA hosted a tax education seminar with faith-based organizations in the Ashanti region as part of activities geared towards mobilizing more revenue from the informal sector.

Many players in the informal sector are failing in their tax obligations, mainly due to the complexity of the tax system.

Ms. Boateng explains the categories expected to be captured under the new tax regime.

“For the first category, it is going to be paid in instalment. This is going for those selling on tables. With the second one, we look at the turnover for the year from 20,000 to 500,000 cedis then add 3% to it and spread it over the four quarters for payments,” she said.

Through its tax education program for the month of August, the GRA engaged traders, and other stakeholders in a series of dialogue to enhance voluntary tax compliance.

Ms. Boateng charged religious leaders to encourage members to honour their tax obligation for national development.

“If the church is operating businesses like printing press or book shop, they ought to pay taxes. We realize those who sell at the various market centres are the very ones that go to church and mosques. So, it is prudent we engage the religious leaders to encourage their members to honour their taxes,” she added.

Chief Revenue Officer at the Kumasi Collection of the Customs Division, Evans Teye Agbozo assures of transitioning from robust to more friendlier transactions.

“This year is our customer-based strategy where we are moving from that robust way of dealing with taxation to a more friendly approach in transacting,” he said.

While assuring to oblige the tax payments, participants at the program anticipate purposeful use of the collected revenues.

“It is expedient for us as clergy to educate our people to pay their taxes just as they do with their tithes. But if these mobilized revenues could be utilized effectively, I think paying wouldn’t be a problem,” one of the participants said.

This is in addition to the 14 currently being enforced in Ghana.

According to Mr Nuer, six of the agreements are pending Parliamentary ratification, five are still being negotiated (Hungary, Israel, UAE, Korea, and Egypt), while five more have been concluded but are yet to be signed.

Furthermore, while discussions have begun on three others, three more are being renegotiated.

“We are renegotiating them because although they were negotiated a while back – some more than 20 years ago, they were not ratified. Things have changed then, such as models which are now outmoded so we need to renegotiate them and bring them up to date”, he remarked during a UK-Ghana Chamber of Commerce (UKGCC) and PwC Ghana webinar on Tax Residency Rules in Ghana: Preparing Multinationals for Compliance”.

These treaties, once they come into force, will provide relief from double taxation, reduce tax rates based on negotiated agreements, provide exemptions to companies such as foreign airlines and shipping companies, and provide access to Mutual Agreement Procedure (MAP) for dispute resolution among others.

However, for a person to benefit from these treaty agreements, the person must be a resident of Ghana, a resident of the treaty partner, or both; be a beneficial owner of the income, and meet any limitation of Benefits (LOB) or Entitlement to Benefits provisions contained in the treaty, where applicable.

Defining Ghana’s Corporate Tax Residency Rules

Tax residency is an important aspect of taxation for both individuals and entities, determining which country has the right to tax individuals’ worldwide income.

In Ghana, the Income Tax Act 2015 (Act 896) imposes taxes on the total income of ‘Resident Person(s), including companies, from all sources (domestic and foreign).

According to Michael Adu-Owusu, the Head of CRS Compliance & Enforcement at Exchange of Information (EOI) at the Ghana Revenue Authority, a ‘company’ is one that is incorporated under the laws of Ghana (Companies Act 2019 (Act 992), with the management and control of its affairs being exercised in Ghana at any time during the year.

Through this arrangement, the income tax act establishes what is termed as a Permanent Establishment (PE). A PE is an entity separate from its owner and subject to tax under Section 1 in the same manner as a resident company, if the PE is a Ghanaian permanent establishment.

A Ghanaian PE is a place in Ghana where a non-resident person carries on business, or engages in a construction, assembly or installation project for ninety days or more.

Activities of a PE encompass when an owner of a company employs an individual resident in Ghana or makes a sale of trading stock of the same or a similar kind as those sold through a PE.

“So, the extent that this rule apples, the entity will be considered to be PE and the tax rule will apply accordingly’, Mr. Adu-Owusu said.

A company may also be deemed taxable based on its Place of Effective Management (PoEM). PoEM is the place where key management decisions that are necessary for the conduct of the entity’s business as a whole are in substance, made.

Some factors to be considered in determining PoEM include the place where the CEO and other senior executives usually carry on their activities.

Tax Residency Status and Challenges with Compliance

A company operating in Ghana can fall between a PE and a PoEM.  This can lead to challenges complying with the tax laws.

For instance, Godwin Kofi Matachor, a Senior Manager in International Tax and Transaction Services with EY Ghana and a speaker during the webinar, highlihted that it is often challenging to properly label foreign companies who only set up liaison offices in Ghana, in lieu of manufacturing or providing any service. This makes their tax obligations as either PE or PoEM difficult to determine.

Mr. Nuer, in response, urged tax payers to consult the Commissioner General of the GRA to determine their status.

“It is always important to talk to the GRA. Once your concerns get to the GRA, there are several tests that would be applied and if it is determined, for instance, that you are a PE, the company would have to file a return and make some payments”.

Mr. Nuer stressed further that, “Your residency determines how you are taxed. It doesn’t change your liability to tax. That is why, if we’re not sure, we use the mutual assistance programme to determine where you should pay the tax”.

However, in the absence of a Double Taxation treaty, a foreign tax credit system (FTC) is used. FTCs, Mr. Nuer said, reduce tensions that may arise due to misconceptions in double taxation cases.

Resolving International Tax Issues

Mr. Nuer revealed that the UN Model Convention is currently being revised to set up a framework convention on international tax cooperation, as well as establish protocols on how the framework will operate.

The revision will synthesise and harmonise double taxation agreements across various jurisdictions to eliminate different considerations of what constitutes a resident company from one jurisdiction to the other.

Mr. Nuer was optimistic that “In the next few years after these things are completed, we will get a good idea of what to expect”.

While Mr. Nuer does not expect the rules to change much, he expects that the revised convention will harmonise existing double taxation issues to enable multinationals easily comply with Ghana’s tax residency rules.

“We will have one set of rules. Ghana will not have a different set of rules different from the UK or the USA. There will be generally some balance in the rules so multinationals can engage comfortably with the GRA.

The Way Forward

Mr. Nuer advised taxpayers seeking further education on DTAs and their commentaries to consult the UN Model Convention.

“We have departed from what the Organisation for Economic Co-operation and Development (OECD) uses. Even though the GRA uses a hybrid commentary, ours is closer to that provided by the UN Model”, he said.

To be generally compliant with Ghana’s corporate tax laws, Mr. Nuer further advised non-resident taxpayers to contact the GRA’s Client Service Unit but “If you’ve been registered for VAT, then it means that automatically, you have a TIN and can therefore use the GRA web portal”, he said.

Mr. Adu-Owusu added that the “GRA’s Client Service is on hand to assist, whether it is IT related, legislation, misunderstanding, or whatever the issue is, it will be duly addressed for you to conveniently comply with the laws and pay your taxes”.

The webinar, moderated by PwC Ghana’s Christiana Osei-Mensah, discussed a range of related topics including the payment of final withholding taxes in non-resident cases, DTA tax rates, how to access DTA treaty benefits, and how a change in residency status affects tax obligations and compliance.

Yvonne Nikoi, Head of the Accounting and Taxation Department of Minkah-Premo, Osei-Bonsu, Bruce-Cathline and Partners (MPOBB), also spoke during the event.

According to Commissioner General Julie Essiam, the current Value Added Tax (VAT) structure makes it difficult for individuals and businesses to comply.

She made this call at the 12th Annual International Tax Conference organized by the Chartered Institute of Taxation, Ghana.

“These policies must be simple and easy to understand by everyone and all of us. As we look into the future as a revenue authority, we believe that the future tax policies should focus on the simplification of tax handles.”

“For example, we must work towards having a simple rate for VAT and avoid the perceived cascaded effect of the simplicity of rates under the current regime,” she added.

She furthered that a review of the policy will greatly enhance compliance among private-sector businesses.

“Tax policies must therefore be flexible enough to grow and optimize tax revenues in tandem with private sector development.”

Ghana is under pressure to improve its domestic revenue inflows. The current economic challenges and the country’s inability to raise funds from the international capital market have made it imperative to boost domestic revenue generation.

The Ghana Revenue Authority (GRA) announced in July 2024 that it collected GH¢68.05 billion for the first six months of 2024, exceeding its mid-year target by GH¢138.69 million, representing 0.2 per cent excess collection by the authority.

Businesses advocate review of VAT

Business associations, including the Ghana Union of Traders Association (GUTA), ad the Association of Ghana Industries (AGI) have consistently called for a review of the current VAT system describing it as disincentive to the private sector.

GUTA has partly blamed the current VAT system on the price hikes in the market.

CIT input

On his part, President of the Chartered Institute of Taxation, George Ohene Kwatia advocated for a national tax policy to harmonize activities in the sector.

He maintained that this would help support political parties and streamline tax policies.

“If you have a true national policy, it will drive the tax agenda. This will serve as a guideline for every government that comes to power. This will avoid frequent changes in our tax regimes based on the government in power.”

12TH Annual International Tax Conference

The conference was organized by the Chartered Institute of Taxation, Ghana.

It aims to create a unique platform for policy makers, academia and tax professionals to share ideas on improving the country’s tax regime.

It encourages conversations on the development and implementation of tax reforms which creates an enabling environment for businesses to thrive.

The 3-day conference, which ends on August 23, 2024, is on the theme ‘Balance tax policy and private sector development’.

The OSP has requested the unedited footage of the documentary to facilitate a thorough investigation into alleged bribery and corruption involving some staff of the Customs Division of the Ghana Revenue Authority (GRA).

The OSP becomes the third public institution to respond to the documentary, following reactions from Parliament and the GRA.

Porous Borders showcased real-time footage of corrupt activities by some customs officials at Ghana’s eastern border.

In the wake of the documentary’s release, the Customs Division of the GRA announced on July 31 that it had assembled a team to investigate the corruption claims. Parliament also reacted, with Yusif Suleiman, Ranking Member on the Trade and Industry Committee and MP for Bole-Bamboi, describing the country as “sick” after viewing the exposé.

On August 2, 2024, the Special Prosecutor confirmed the commencement of an investigation into the allegations in the documentary.

The office has formally requested the documentary’s unedited recordings to support its inquiry.

Additionally, the documentary producers have been invited to assist with the investigation as witnesses.

This was revealed during an engagement at the Public Accounts Committee sitting on Monday, July 29, by officials of the GRA.

While some of these entities are viable and have shown an intention to pay, the Committee raised concerns about redundant ones like the Tema Oil Refinery (TOR).

A GRA official noted, “GACL and Graphic Corporation currently have cash flow challenges. They’ve indicated to us that we need to give them a moratorium to be able to come back to us. So, for them, they are prepared to pay once their cash flow improves.”

Minister of State at the Finance Ministry, Abena Osei Asare, speaking about companies that are unlikely to pay their taxes, stated, “Mr. Chairman, we have done this before. We brought it to Parliament; we went through a process and brought some to Parliament for Parliament to write it off.”

“If it becomes necessary after all avenues to collect these monies have failed, we will go through that process and then come to Parliament for permission to do that.”

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The Finance Minister, Dr. Mohammed Amin Adam, announced this during the 2024 Mid-Year Budget Review in Parliament on Tuesday, July 23.

Dr Adam emphasized the government’s efforts to amend existing legislation to implement new revenue measures aimed at broadening the tax base and enhancing tax compliance.

“In the 2024 Budget, the government amended existing legislation to implement these revenue measures. These measures also aim to broaden the tax base and improve tax compliance for a more equitable and efficient revenue system,” he stated.

Despite not all measures being implemented in the first half of the year, the Minister highlighted that GRA’s enhanced compliance and enforcement strategies were pivotal in exceeding the mid-year target.

“Mr. Speaker, while not all the measures were implemented in the first half of the year, through enhanced compliance and enforcement, the Ghana Revenue Authority (GRA) exceeded its mid-year target by 0.2%,” Dr. Adam noted.

He added that, the GRA’s Non-Tax Revenue (NTR) also performed exceptionally well, surpassing the target by 14.0% as of the end of June.

This was revealed by a Deputy Minister of Finance, Dr. Alex Ampaabeng at the launch of the 8th Ghana Economic Update by the World Bank.

According to him, his outfit and the Ghana Revenue Authority are presently cleaning the tax database to ensure the nation accrue more tax revenue.

He continued that the government will do everything possible to improve the fiscal environment.

According to him, the government will reduce the human interface with respect to tax collection and improve digital collection.

“Going forward, reducing the human interface is key to growing our [Ghana’s] tax revenue. Then Ministry of Finance is working with the GRA to reduce lots of tax infractions.”

Ghana’s tax collection has been low relative to its peers. Between 2017 and 2021, Ghana’s average tax collection was 13.2% of Gross Domestic Product (GDP).

This was well below the Sub-Saharan Africa average and 8.0 percentage points short of the country’s estimated tax capacity of 21.2% of GDP.

The World Bank report identified areas of inefficiencies within Ghana’s tax policy framework and compliance mechanisms.

Areas the report identified where this could be enhanced include rationalising large tax expenditures, that have contributed to the overall decline of tax revenues. This it said would require striking the balance between reducing revenue losses and the potential distributional and social impacts.

The World Bank said if addressed, these could help ensure macroeconomic stability and generate resources necessary for sustainable long-term growth and poverty reduction efforts.

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This represent about 47 percent of its total annual revenue target  for the year — which is ₵146 billion.

The ₵68 billion represents a 0.2 percent increase, exceeding its mid-year budget against a half-year target of ₵67.9 billion.

Speaking at a press briefing to announce the mid-year performance of the GRA, Commissioner-General, Julie Essiam said the authority (GRA) will focus on customer satisfaction as part of a strategy to meet its revenue target by the close of the year.

“For the 2024 fiscal year, the GRA was tasked to collect ₵145.99 billion. That is this year, representing a 29.1 growth over the ₵113.06 billion collected in the 2023 fiscal year last year. With the commitment of the outstanding staff that I referenced, I’m happy to announce that as of June this year, the GRA collected a total of ₵68.49 billion against a half-year budget of ₵67.9 billion”.

“Therefore exceeding the cumulative mid-year target by ₵138.6 million , which represents a 0.2 increase. Therefore, the GRA exceeding mid-year budget by 0.2%. Ladies and gentlemen, this achievement represents a nominal growth of 37.60% over the same period last year”, she said.

Ms Essiam said the authority experienced some shortfalls in revenue from January to March but rebounded to exceed its target from the month of April to June.

“To break down the details of the performance to date, the month of January we fell below target by 12.3%. February showed a shortfall of 6.3%. March suffered a similar trend of an increased negative deviation of 12.7%. We started to rebound from April and exceeded target by 1.9% that month, then exceeded again in May by 1.4%, and subsequently a significant achievement of the positive increase of 21.2% in June.”

“As we can see, the outstanding performance in June was supported or supported the turnaround to help with a positive half-year performance of the 0.2% of the total half-year budget,”she stated.

The authority said it acknowledged the headwinds during an election period but poised to work to meet its target by the close of the year.

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In May 2024, the Authority pledged to bring onboard over 600 large companies onto its E-VAT system by June of the same year to enhance revenue collection and monitoring.

Speaking at a brief meeting with the Presiding Bishop of the Methodist Church Ghana, Rev. Dr. Paul Boafo, the Board Chair of GRA, Joe Ghartey noted that the company is planning to onboard more companies on its E-VAT platform.

“For example, there is a policy of digitizing the collection units. Studies have shown that if tax collection is digitized, it’s easier to monitor and it will increase revenue.”

“In the beginning, it was difficult to let people understand. So the GRA set a target of 600 large companies to be on-boarded. This simply means that the company should be put on a system which is digitized. By the time the GRA was declaring their final result, they have reached 640, passing the target by 40.”

Mr. Ghartey expressed hope that the GRA can increase its target for the next two months.

“Management has set another target for the next two months but the board has set a higher target. And I know they will succeed by God’s grace”.

The Commissioner-General of the GRA, Julie Essiam stressed the need to develop partnerships with various faith based organisations to educate the public about tax compliance.

“As we move forward, our vision is to leverage this pioneering partnership as an operating model across all faith based organisations”, she said.

On his part, the Presiding Bishop of the Methodist Church of Ghana, Rev. Dr. Paul Boafo, urged the general public to abide by the laws of Ghana and contribute their quota to the socio-economic development of the nation.

The visit to the Presiding Bishop of the Methodist Church by the GRA is to strengthen its partnership with the church.

The visit was led by the Commissioner General and the Board Chair of GRA, flanked by board members, Deputy Commissioners and other high ranking staff of the Authority.

The revenue mobilization agency in its bid to achieve its annual target of ¢149 billion by the end of 2024, intends to partner various faith based institutions in the country to create awareness on tax compliance and encourage members of the society to be tax abiding.

“All manufacturers producing excisable goods are required to register under the Excise Duty law. This is the first point of compliance. The warehouse where you are keeping those excisable goods must also be registered and you should also provide a bond or security. The first two are rigorously being followed. It is the third part, which is the issuance of a bond or security that has been relaxed but discussions are ongoing to begin rigorously enforcing that too”, he mentioned

Speaking during the UK-Ghana Chamber of Commerce’s (UKGCC) and PwC Ghana webinar on Compliance for Businesses in Ghana under the Excise Duty Act 2024 (Act 878) & Excise Duty (Amendment) Act 2023 (Act 1093 and Act 1108), Mr. Anto explained that the law would now be rigorously enforced because bonds provide critical information on “the quantity of excisable goods to be produced, the amount of excise duty to be collected, and the date by which excise duty will be paid.”

A bond must therefore be issued to provide grounds for the Commissioner General of the GRA to retrieve taxes, should the manufacturer fail to pay according to the law. Manufacturers who fail to enter into bond or lodge security will pay twice the amount of duty in penalties.

Mr. Anto added that if manufacturers intend to increase their production, they ought to ensure their bonds reflect the change so the appropriate revenues can be collected.

What is Excise?

Excise is an indirect tax administered worldwide for different reasons. It is not a general consumption tax like Value Added Tax (VAT).

It is imposed on selected products either locally manufactured or imported. They are also imposed at different stages of the manufacturing process, either at the point of sale, distribution, point of importation, or point of manufacture.

Why Does Ghana’s Government impose Excise Duties?

According to Mr. Anto, excise duties are imposed to discourage certain behaviours and reduce their consumption to curtail non-communicable diseases such as hypertension, diabetes, and others.

“In the last amendment 1093, excise duty on sweetened beverages and fruit juices was introduced. It was aimed at making the product a bit expensive so consumption of these products can be reduced, their consumption of which cause health problems.”

“It is also used to redistribute wealth. You can impose excise duty on products patronised largely by the affluent to benefit society”.

Excisable Products

Excisable goods, per Section 1 of the Excise Duty Act 2014, include alcoholic drinks (spirits) with an excise duty rate of 50% of its ex-factory price; and wines with an excise duty rate of 45% of its ex-factory price.

Mr. Anto remarked that the current amendment of the Excise Duty Act introduced a hybrid excise duty rate on tobacco products, adding, “For every stick of cigarette, the excise duty rate of 28pesewas is applied, together with an ad valorem rate of 50% of the ex-factory rate or if imported, the value applicable to it at the ports”.

The excise duty rate for beers and malt drinks is affected by a sliding scale policy where manufacturers, depending on the quantity of local raw material used for the manufacture of beers and malt drinks, are granted concessionary duty rates.

Fruit juices, on the other hand, attract a standard excise duty rate of 20% whether locally manufactured or imported.

Other excisable products are pharmaceuticals and textiles (domestic/African prints) which are zero-rated, plastic and plastic products, and petroleum products.

Compliance with the Excise Duty Act

Mr. Anto remarked that ‘registration’ is the beginning of the compliance process. Therefore, manufacturers of excisable goods who fail to register with the GRA pay twice the amount of duty or GH¢500-1000, while manufacturing outside a warehouse attracts twice the amount of duty.

Other offenses such as failure to submit a return attracts a fine of GH¢500 in addition to GH¢10 per day, while failure to pay tax on the due date attracts 15% of duty in addition to interest of 5% for each day of default.

“Excises are not that popular. However, we have introduced measures to make sure that there is compliance, and to protect people’s brands so all of us should take an interest in making sure we comply”, Mr. Anto stated.

Excise Tax: Challenges and Solutions

Maxwell Ntiri, Senior Manager – Tax Line of Service at PwC Ghana and webinar moderator, noted that Ghana’s excise tax regime is fraught with challenges.

He said these include insufficient tax education, varying positions of tax officials, and weak enforcement of excise tax laws.

He suggested an intensification of tax education, consistency in applying the provisions of the tax laws, and increased compliance enforcement, respectively, as solutions.

Mr. Anto also admitted that the registration process is quite a cumbersome one. He shared, however, that officers are on hand to guide clients through the process should they visit the GRA offices.

The Future of Tax in Ghana

For his part, Mr. Daniel Nuer, Head of the Tax Policy Unit, Ministry of Finance, remarked that Ghanaians should expect more excise tax regimes as the government reduces taxes and provides incentives for other sectors of the economy.

“The general idea is to be able to use taxation to expand the economy and support growth”.

He urged industry to share their concerns with the tax authorities so they can be considered when tax policies are being drafted. He also encouraged Ghanaians to see the implementation of taxes as a collective duty and not just as that of the revenue authorities or the government.

“Imitation tax stamps and smuggling works against our jobs and our livelihoods so when you notice things like this, give us a call and we will follow up”, he said.

Mr. Anto added, “if you find any product on the market without tax stamps, please notify the GRA office close to you.”

He invited Ghanaians to download the GRA Tax Stamp Authenticator app from the Google Play store, to verify the authenticity of stamps affixed to products to help enhance compliance.

The panel also discussed a wide range of related topics such as credits and the conditions for refunds, the rationale behind the introduction of zero-rated excisable goods, the emissions levy, and the difference between VAT and Excise Duty exemptions.

The Authority in a statement said that the exercise will cover all categories of taxpayers as it is advising all persons and companies with outstanding arrears to move now to settle their obligations.

It added that, the Ghana Revenue Authority will use all enforcement tools to retrieve these unpaid taxes after this Friday.

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Speaking on Joy FM’s Super Morning Show, the economist noted that digitising the tax system would improve efficiency in revenue generation and minimise human discretion in tax collection.

While acknowledging that the Ghana Revenue Authority (GRA) and other institutions have digitised some of its tax system, Prof Quartey believes it should be intensified and the tax basket expanded to cover the informal sector.

“We need to raise more revenue domestically, not by imposing higher taxes but by making the existing tax systems more efficient, and we’ve started that with digitization which GRA and the others are doing and I think we need to deepen that.

“And we need to remove the human interface. There is so much discretion when it comes to raising revenue in the country,” he stated.

Mr Quartey’s assertion comes after the Member of the House of Lords in the United Kingdom, Lord Paul Boateng in his keynote speech at a leadership lecture at the UPSA in Accra, said it is time Ghana moves away from reliance on foreign aid.

Lord Boateng indicated that the country will not experience any significant growth since the dependence on external aid hinders progress.

The ISSER Director, who concurs with Lord Boateng, said domestic revenue generation could reduce the country’s dependency on external funding sources.

Another important step to help Ghana achieve financial independence, Prof Quartey believed is for government to reduce its expenditure.

He stressed that even though revenue generation is low, the government often bloated expenditures in its annual budget statements.

Referring to budget statements from 2022 and 2023, he questioned the rationale behind significant expenditure hikes despite revenue challenges.

“We also need to look at our expenditure. I don’t think we are getting value for money for the expenditures, especially for the procurement of goods and services.

“It surprises me that in times of difficulty like this, if you look at the budget statement from 2023, 2022, and even before that we increased expenditure, sometimes, 42%, 30% and you ask yourself, if you are struggling to raise revenue yet your expenditure is still going up, how do you address all the beautiful things you raised in the Ghana Beyond Aid document? We need to go back to the drawing board,” he stated.

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According to the fund, despite assurances from the government, a portion of the shipments remain stuck at the port and can expire.

In April, the Ghana Revenue Authority (GRA) announced it had secured the tax waivers to enable it to clear the drugs after months of delay.

However, demurrages and third-party charges are amounting to seven million cedis which must be paid.

Due to this debt, more than 118 containers are stuck at the port.

Samuel Hackman, from the Global Fund Coordinating Mechanism Secretariat, stated that it not only affects the $45 million worth of commodities but also strains Ghana’s relationship with the Global Fund.

“It is as bad as it was two months ago because the issue has not been fully resolved. This issue we are referring to is part of the $45 million commodities that were procured by the Global Fund under the GC Six Ghana, and part of it has still been held at the port. It’s very worrying. And it’s also denting the relationship that we have with the Global Fund as a country.”

“They have stated categorically to us that they would have done that earlier but for the long-standing relationship they would want to hold on and see the promises that we have put on the table and whether we will be able to fulfil them or not, and it is within a specified time that we need to do that or count ourselves out.

The Global Fund needs to explain this to its donors and the management of the fund need to explain this to their boss. And so nobody wants to find himself doing this kind of communication which does not bring anything, so I can assure you that if these commodities are not taken out of the port in time and in time means now, then communication will be received from the Global Fund.”

Meanwhile, hospitals across the country are facing critical shortages of essential drugs, particularly TB medications, due to the backlog at the port.

President of the Ghana HIV and AIDS Network, Ernest Amoabeng Ortsin, highlighted the urgency of this issue.

“It is true that we have run out of stock for TB medications. It is also true that the Global Fund has indicated that it is going to cut ties with us as a country. When it comes to treatment for these two diseases, HIV and TB for example, if you are on medication and you stop, your body develops a resistance. So later on, when you go back to the medication, it doesn’t work. It will mean that you need to be taken unto a second line of medications which are even more expensive.”

“These are medicines that the government of Ghana is not even procuring. They are being given to us for free and yet we simply cannot take them from our port. It is baffling” he bemoaned.

Speaking on Joy FM’s Super Morning Show on Thursday, May 23, the journalist, whose work in collaboration with the Fourth Estate, a project of the Media Foundation for West Africa (MFWA) shed light on the transaction, said he is not “impressed about the fact that they [Government] are still trying to keep aspects of this contract.”

He noted that, there is no evidence that SML held oil marketing companies affiliated with political actors accountable.

According to him, the said OMCs engage in diversion, dilution, and under-reporting thus, robbing the government and the country of huge sums of money.

“…the fact that politically affiliating OMCs sell the products, take the taxes, and don’t go back to pay to the government, these are the avenues through which the state loses revenue,” he said.

It is on the back of this that Mr Awuni believes that the SML is not performing its required duties, hence the best decision was to terminate the contract.

“And from this report, I have yet to see anywhere that SML came in and is tackling this problem. So the best move is to clear out this deal,” he said.

SML Controversy

In April this year, an investigation by The Fourth Estate, uncovered numerous irregularities in the contracts between Strategic Mobilisation Limited (SML), the Ministry of Finance, and the Ghana Revenue Authority (GRA).

The investigation revealed discrepancies in SML’s claims regarding its services aimed at tackling revenue losses in the downstream petroleum sector.

President Akufo-Addo subsequently instructed KPMG to conduct a comprehensive audit.

Despite SML’s assertions that its services were effectively addressing under-declaration, dilution, and diversion of petroleum products, evidence presented by The Fourth Estate showed that these functions were being carried out by other companies and the National Petroleum Authority (NPA).

Managing Director of SML, Christian Tetteh Sottie admitted to the inaccuracies and promptly removed the false claims from the company’s website.

Despite these revelations and other admitted falsehoods, Minister of Finance Ken Ofori-Atta initiated a process in 2023 to expand SML’s contracts to include the gold and oil-producing sectors. This decision significantly increased the annual contract sum to over $100 million.

Following the investigation by The Fourth Estate and subsequent public outcry, President Akufo-Addo suspended the contracts and commissioned KPMG to conduct an audit and submit a report.

While the president released a press statement regarding the findings, the full report provides even more damning revelations about SML’s operations within its contracts with the Ministry of Finance and the GRA.

The informal sector of the economy is said to be elusive in tax mobilization but the GRA says it is working to include persons who either evade or avoid taxes.

The Ashanti regional branch of the authority embarked on a sensitization tour in some market centres in the region.

In Ghana, tax avoidance and evasion are widespread, mainly in the informal sector, in which 86% of the country’s workforce is employed.

Out of the potential tax revenue to be collected from the informal sector, only a third is estimated to be collected annually.

The Ghana Revenue Authority is intensifying efforts to expand the tax base in the sector through its modified tax regime.

Dedicating the entire month of April to tax awareness, the Ashanti regional branch of the authority embarked on a sensitization campaign throughout major trading centers in the region.

Acting Chief Revenue Officer at the Taxpayer Service Centre, Jerry Adu Poku says the authority is working assiduously to include all tax avoiders and evaders into the database.

“We’ve taken addresses of those evading the taxes. We will go into our system and contact the person and register them. Those evading we have upfront VAT payment at the port. We have tax system for the informal sector called modified taxation where they get to pay by installment. We’ve been taking it from them,” he said.

Spanning from Ejisu to Abuakwa and Suame, the GRA brought the tax collection and education closer to the populace where businesses were sensitized on filing returns on their taxes.

Under the theme Taxes and Good Governance, the exercise is part of activities streamlined to enhance tax revenue collections for the government.

The GRA is advising business entities and individuals to conduct regular bookkeeping to facilitate easier tax calculations and exemptions.

“We need your bookkeeping to convince us that the threshold that meets what you are being asked to pay. We are educating them on the need to keep records so we can see the turnover,” Principal Revenue Officer at the Suame area branch, Adu Asare, said.

Meanwhile, there are punitive measures to be meted out to persons who evade or avoid taxes.

“Once a taxpayer fails to file or commit any of the tax offenses you will be punished. The punishment could stem from fine or imprisonment,” Adu Asare said.

He stressed that without adequate revenue, financing the budget would be challenging, leaving loans as the only option.

During a visit to the Ghana Revenue Authority (GRA) in Aflao, the Minister commended the staff for their dedication to mobilizing revenue to fund essential government programs.

The Karaga Member of Parliament acknowledged their significant contributions and emphasized the importance of their work in achieving national development goals.

Dr. Adam expressed the urgency of the situation, highlighting the limited time he has as Finance Minister to deliver results.

He stressed the need for collective efforts from all stakeholders to succeed in meeting revenue targets and driving sustainable development.

Recognizing the importance of efficient revenue collection, the Minister underscored the need for continuous improvement and innovation within the Ghana Revenue Authority.

He encouraged staff to explore new strategies to enhance revenue mobilization while ensuring transparency and accountability.

In conclusion, Dr. Adam reiterated the government’s commitment to maximizing revenue collection to finance critical programs for the benefit of all Ghanaians.

He expressed confidence in the dedication of the Ghana Revenue Authority’s staff and called for their continued support in achieving the nation’s development objectives.

“I came here to encourage you to double your efforts and not to talk down on the significant progress that you have achieved in recent years”, he said.

“I have just a few months to end my tenure as Finance Minister but help me, let’s work together for this one-year stewardship as a Finance Minister to be memorable for me and all of us so we can say that during the time Amin Adam was Finance Minister, he worked with GRA officials and revenue collectors and this is the legacy we left,” he added.

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In a statement issued today, the GRA provided clarity on its phased approach to E-VAT implementation and highlighted the positive impact seen so far.

The statement comes in the wake of some publications circulating in the media that the E-VAT is in limbo, and has caused Ghana to lose billions in revenue.

According to the GRA, the rollout of the E-VAT system has been conducted using a phased approach, with the pilot phase already completed successfully.

Read the full statement below:

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In all, 12 bills of lading of the pharmaceutical products donated by the Global Fund which have been locked up at the Tema Port since May last year will leave the ports by the close of this week for onward distribution to enhance the country’s fight against the three major diseases.

This follows the intervention of the Acting Commissioner-General of the Ghana Revenue Authority (GRA), Julie Essiam, who met with the leadership of the Country Coordinating Mechanism of the Global Fund to fight HIV/AIDS, TB & Malaria (CCM-Ghana) in a bid to resolve the impasse over the $45-million worth of pharmaceutical products locked up at the Tema Port.

Ms Essiam, at the meeting with CCM-Ghana, indicated that it was unfortunate that while an exemption had been granted for the products, there were outstanding liabilities for third party clearance fees, charges, demurrage and other penalties on the goods at the port.

Due to the non-payment of the charges, the goods have overstayed and, therefore, been forfeited into GRA custody.

The commodities include Antiretrovirals (ARV) for the treatment of HIV, medications for treatment of tuberculosis (TB), Artemisinin-based Combination Therapy (ACTs) for the treatment of malaria and insecticide treated nets (ITNs), Rapid Diagnostic Test Kits (RDTs), and GeneXpert Cartridges.

That notwithstanding, the Commissioner-General stated that GRA would work with the Ministry of Finance and the Ministry of Health to ensure that appropriate processes are followed to secure the release of the goods expeditiously.

In an interview after the meeting, Commissioner-General Essiam indicated that it was important to pay special attention where the GRA’s operations intersected with the health sector, as lives were at stake.

“It is my priority to engage consistently and meaningfully with stakeholders from all sectors, to ensure that the GRA is serving the needs of our clients not only with integrity and fairness, but also with empathy. We will continue the drive to achieve the nation’s revenue mobilisation goals with greater efficiency and empathy,” she stated.

The acting Chairman of CCM-Ghana, Ernest Amoabeng Ortsin, on behalf of the team, thanked the Commissioner-General for her proactive and solution-oriented approach, highlighting the tremendous impact that the release of the health commodities would make.

“Some health facilities are already running out of malaria Rapid Diagnostic Test Kits (RDTs), Insecticide Treated Nets (ITNs), and Antiretrovirals (ARVs). In fact, the Pharmaceutical Society of Ghana (PSGH) informed us all in a statement last month that there would be a complete stock-out of ARVs in the country by May 2024 if nothing was done to resolve the situation,” he stated.

“It goes without saying that the consequences for our fight against HIV/AIDS, tuberculosis and malaria would be dire,” he added. “This meeting with you, Commissioner-General, is, therefore, very timely and we are satisfied with the roadmap provided for the way forward, in conjunction with the Ministry of Finance and Ministry of Health,” Mr Ortsin said.

The Commissioner-General was accompanied to the meeting by a Deputy Commissioner, Emmanuel Ohene, and the Deputy Commissioner, Customs Operations, Kofi Baidoo, while on the side of the Global Fund programme were the Executive Secretary, CCM-Ghana, Samuel Hackman, and the Oversight Officer, COVID-19 Response Mechanism, Sidney Kweku Danso.

Coalition petitions

Meanwhile, the Coalition of CSO Network in HIV, TB and Malaria said it would stage a demonstration on Wednesday, April 17, 2024, to present a petition to the Presidency and Parliament over the continued lockup of Global Fund-donated health commodities at the Tema Port.

At a press conference in Accra yesterday, the convenors explained that the demonstration would begin at the Obra Spot at the Kwame Nkrumah Interchange at 7 a.m.  through some principal streets before presenting the petition.

The coalition explained that the commodities valued at more than $45 million had been wasting away at the port since May last year. That, they said, had created a shortage of the products in health facilities across the country and caused loss of lives and frustration to health workers.

Sign agreement

The coalition is also asking the ministries of Health and Finance to sign an agreement letter where the country must commit to contributing 15 per cent of Grant Cycle Seven (GC7) of $248 million, which translates into about $45 million, to shore up the support from the Global Fund.

They explained that the Global Fund encouraged domestic investments in health systems and the three diseases to accelerate progress to end them as public threats by 2030. “The agreement letter, which requires the signatures of the Ministers of Health and Finance, ought to have been submitted in May 2023 at the time the country was submitting the GC7 Funding Request.

“However, this letter has not been signed for the past one year and is now posing a threat to the disbursement of funds to the country,” Mr Ortsin, who is also the Lead Convener and President of the Ghana HIV and AIDS Network, said.

He called on the Presidency and Parliament to take immediate actions to prevent a public health emergency. Giving details of the situation, the Lead Convener said the Global Fund had since 2002 supported the country’s national response against the three diseases to the tune of more than $1.2 billion, made available to the country in three years’ cycles.

He said the Global Fund, as part of its commitment to GC6, shipped HIV and AIDS, TB and Malaria commodities worth $45 million. Upon arrival, the government informed the Global Fund that an amount of $400,000 made available by the Fund for procurement and supply management cost was not sufficient for the clearance due to increases in port charges.

“According to the government, the required amount in taxes, levies and port charges for the clearance of the commodities would be $3.6 million,” he said. Mr Ortsin expressed concern about the storage conditions of the commodities, stating that the medications might be expired or no longer safe for human consumption if immediate action was not taken.

The Founder and Executive Director of non-governmental organisation, Hope for Trust Generations, Cecilia Lodonu-Senoo, urged the public to get involved to push the government to facilitate the clearance of the commodities.

“We cannot just compromise the lives of people, especially the vulnerable population in this country, to die because of somebody’s irresponsibility,” Mrs Lodonu-Senoo said.

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According to TAGG, his comment is a true reflection of of how GRA deals with the business community in the country.

During a recent meeting with the Ghana National Chamber of Commerce and Industry, Dr. Bawumia expressed concerns about the conduct of GRA personnel, alleging instances of customer harassment under the guise of tax collection.

Following this, GRA Workers’ Union, condemned the Vice President describing his statement as “unfortunate”, viewing them as a slight against the diligent efforts of employees.

However, the Traders Advocacy Group Ghana (TAGG) in a statement on March 27 noted that, GRA has been harassing businesses in its revenue mobilization drive.

They said GRA workers union’s reply to Dr. Bawumia is misleading the trading public.

The Advocacy group further urged the management of GRA to take steps to address the issue as a matter of urgency to save businesses from collapsing rather than going after the Vice President.

“We are by this release, imploring all relevant stakeholders including the GRA to adopt a business-friendly tax regime to rake in revenue for the State while stimulating the growth of businesses,” the statement added.

Read full statement below:

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According to the National Democratic Congress (NDC) Members of Parliament (MPs), Dr. Bawumia’s comments hold no substance, especially given his position as the Vice President of the country.

In a press statement issued on Tuesday, March 26, and signed by their leader Dr. Cassiel Ato Forson, they stressed the importance of accountability, urging Dr. Bawumia and the government to take responsibility for creating what they perceive as a high tax regime.

The Minority expressed astonishment at Dr. Bawumia’s public criticism of the GRA, arguing that the authority is simply carrying out its constitutionally mandated duty of tax enforcement.

Furthermore, they contended that the excessive taxation policies under the Akufo-Addo administration have made Ghana a less attractive destination for business activities.

“It is shocking to note that Alhaji Bawumia had the audacity to single out GRA workers for attack and condemnation after the Akufo-Addo/Bawumia government had imposed a lot of taxes on businesses and Ghanaians.”

“The government’s huge appetite for taxes has created a high tax regime which has made the country unattractive for doing business. It is therefore not surprising that many businesses in Ghana are relocating to other countries in the West African sub-region. This spells doom and gloom for Ghanaian employees as jobs which would have otherwise been filled by them get exported as a consequence of the relocation of businesses from the country.”

During a meeting with the Ghana National Chamber of Commerce and Industry, Dr. Bawumia expressed concerns about the alleged misuse of tax collection by GRA staff, citing it as a pretext for harassing businesses.

However, the Organized Labour, in a statement dated Friday, March 22, 2024, deemed Dr. Bawumia’s comments as “unfortunate,” interpreting them as a discredit to the dedicated efforts of GRA employees.

They cautioned that such remarks could breed worker dissatisfaction, impede revenue collection, and provoke industrial unrest.

The group urged the Vice President to either recognize the significant strides made by the GRA or abstain from remarks that undermine their endeavors.

They also pointed out the inconsistency in Dr. Bawumia’s position, given his leadership role in the Economic Management Team and his knowledge of the government’s targets for the Authority through the Ministry of Finance.

“We would like to state unequivocally that, we the workers of GRA find this statement unfortunate and consider it as an attack on the efforts of the hard-working staff of the Authority which if not discontinued, would incur the displeasure of workers, disrupt revenue collection efforts and breed industrial disharmony.”

The Emission Levy, introduced by the Ghana Revenue Authority on February 1, 2024, seeks to impose a levy on carbon dioxide equivalent emissions on internal combustion engine vehicles.

The Ghana Private Road Transport Union (GPRTU) has threatened to raise transport fares in light of the levy’s implementation.

In an interview with Citi TV, the first Vice Chairman of GUTA, Clement Boateng, disclosed that this could have potential adverse effects on businesses.

“The impact it will have on businesses is that it is going to definitely affect the prices in one way or another because once the levy is implemented it means drivers are going to incur additional costs, and once they incur the additional cost, we don’t have any option other than to pass it on to the consuming public. That is the reason why GUTA would like to take this opportunity to add its voice to GPRTU that the government should suspend the implementation of this emission levy,” he said.

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According to a report by Asaase Radio, between 2013 and 2016, Cheddar incurred penalties of GH¢15,222, GH¢14,492, GH¢13,760 and GH¢6,526 for neglecting to file personal income tax returns.

GRA said though he appeared to comply for the tax years 2018, 2019 and 2020, the trend of non-compliance resumed in 2021 and 2022 for Cheddar.

According to the alleged leaked document, the estimated evaded taxes for these two years are staggering, reaching GH¢2,088,228 for 2021 and GH¢5,096,536 for 2022.

But netizens have asked why GRA failed to investigate and collect the taxes from Cheddar until he declared his intention to contest the presidential elections.

Others also believe his political ambition has made him an easy target for political vendetta.

Check out some of the reactions below:

The task forces have also summoned the owner of an iron rod company for a similar offence.

The woman, whose identity has been withheld, was arrested on Wednesday, December 13, 2023, when the team visited three of her shops and later went to a warehouse of the company located at Teshie in the Ledzokuku-Krowor Municipal District in the Greater Accra Region.

The Manager of a dealer in iron rods and other steel products at Spintex also in the Ledzokuku-Krowor Municipal District in the Greater Accra Region, was also invited to the head office of the GRA for allegedly not registering and failing to issue VAT to his patrons.

The activities of the two companies were earlier identified by officials of the GRA in an undercover test purchasing exercise aimed at finding out the level of compliance by businesses.

As required by law, all suppliers of taxable items, goods or services are to issue VAT invoices while patrons of such goods are also required to obtain VAT invoices for goods they buy.

The computers, supplies invoices and records books of the companies were retrieved by the team for audit purposes while the shops were closed due to their nonconformity to issue the commissioner’s invoice.

Test purchase

Briefing journalists after the operation, the Head of Enforcement and Debt Management for the Accra South Area of the GRA, John Yaw Buabeng, said the authority would conduct pre-emptive assessments and take legal actions to prosecute the business owners if they were found culpable.

He said the companies would be charged under section 58 of the VAT Act 870 for non-issuance of VAT invoices and “the appropriate sanctions will be applied.”

The punishment for infractions such as non-issuance of VAT invoices as provided under the VAT Act included a fine of not more than one hundred penalty units or a term of imprisonment of not more than six months, or both, in addition to a payment of penalty of an amount of not more than GH¢50,000 or three times the amount of tax involved.

A penalty unit is GH¢12.

“When we did the text purchase from the businesses, they did not issue the commissioner’s VAT invoice.

 By the brisk nature of their business, they should have a computer-generated invoice.

We found that they do highly selective issuance of invoices and even that they had to call for approval.” 

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The court granted their request for a Certiorari and prohibition against the OSP concerning the Labianca report.

On August 8, 2022, the OSP released an investigative report revealing that Labianca Group of Companies, a frozen foods company owned by Council of State member Eunice Jacqueline Buah Asomah-Hinneh, evaded import duties exceeding ¢1.074 million.

The OSP alleged that Ms. Asomah-Hinneh utilized her positions in the Council of State and the Board of Directors of the Ghana Ports and Harbours Authority (GPHA) to influence a favorable decision from the Customs Division.

The report implicated Col. Damoah and Deputy Commissioner of Customs Joseph Adu-Kyei in corruption-related acts involving Labianca.

Unsatisfied with the OSP’s report, the two filed a writ at the High Court, seeking the dismissal of the Investigative Report and a restraining order against the OSP from further publication and investigations.

In a ruling on Monday, November 27, 2023, Justice William Boampong stated that the OSP acted without the mandate to make adverse findings against Col.

Damoah and Joseph Adu-Kyei by publishing the report publicly. The court ruled that the OSP assumed the position of a Competent Jurisdiction or a Committee of Inquiry by making adverse findings against the applicants.

Consequently, Justice Boampong granted the request for Certiorari and further restrained the OSP from continuing investigations into the applicants.

Recall that when the Labianca report was released, Col. Damoah accused the OSP of targeting him personally with a report he deemed hollow and motivated by malice.

The OSP called for broader investigations into the Customs Division of the GRA and requested a copy of Integrity plans to prevent corruption.

The former Commissioner and Deputy Commissioner initiated the lawsuit at the High Court after Col. Damoah was implicated in corruption-related acts involving Labianca.

Council of State member Eunice Jacqueline Buah Asomah-Hinneh, the owner of Labianca Company, was accused of leveraging her position to secure favorable decisions from the Customs Division, leading to a reduction in her company’s tax liabilities.

Deputy Commissioner of Customs Joseph Adu-Kyei was cited for issuing unlawful customs advance rulings to Labianca, resulting in a reduction of import values below benchmark values. Col. Damoah was said to have approved this ruling.

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On November 9, the High Court, Accra, (Commercial Di­vision) presided over by Justice Afi Agbanu Kudomor ruled that the GRA did not err in law when it imposed a Value Added Tax (VAT) liability on Scancom PLC for Imported Services between 2014 to December 2017.

This was after the MTN ap­pealed against the imposition of VAT liability at the high court.

Justice Kudomor held that “GRA did not err in law when it imposed National Health Insur­ance Levy and Ghana Education Trust Fund Levy (together with interest and penalties) on Scan­com PLC’s on their Imported Services from August 2018 to December 2018 irrespective of whether they were applied to Taxable or Exempt services.”

She said GRA did not act arbi­trarily when it applied the Ghana Educational Trust Fund Levy and National Health Insurance Levy each of 2.5 per cent on the imported services by Scancom PLC irrespective of whether Scancom PLC’s imported services were used to produce Taxable or Exempt supplies.

“It is for these reasons that the instant Tax Appeal fails. There will be no order as to costs, each party is to bear its own costs,” the court said in its judgement,” Justice Kudomor added.

In 2020, the GRA commenced a comprehensive tax audit on MTN Ghana, spanning the period January 2014 to December 2018.

The audit focused on all aspects of MTN’s businesses in­cluding Input VAT claims related to goods and services procured by MTN Ghana, VAT on services imported by the company and Input Value Added Tax claims related to office premises con­structed by the telecom giant.

Unhappy about the method at arriving at the tax liability, Scancom PLC sued GRA on the basis that GRA erred in law and acted arbitrarily by imposing the tax liability order on the company for the period January 2014 to December 2017.

Scancom PLC wanted the court reverse GRA’s decision to impose additional VAT of GH¢8,793,598 and penalty and interest of GH¢10,933,119 on imported services utilised by Scancom PLC for its telecommu­nication business.

They asked the court to reverse GRA’s decision to impose additional Ghana Education Trust Fund Levy and National Health Insurance Levy of GH¢6,379,483 and penalty and interest of GH¢2,566,124 on imported ser­vices utilised by Scancom PLC for its business.

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In 2022, the collection was given a total revenue target of GHC 20,000 but realized GH¢550, 000 mainly from seized vehicles with tampered chassis and smuggled cars.

In 2023, the Collection was tasked to collect a revenue target of GH¢85,050,000.00, GH¢867, 500.00 for imports, and GH¢4,186,300.00 for Petroleum tax revenue but before the end of the year, in October 2023, it collected double of the target.

The immediate past Sector Commander of Damongo Collection, Assistant Commissioner Labujata Hamidu, who disclosed this during a farewell ceremony towards her retirement in Damongo in the West Gonja Municipality, noted that “as at the end of October 2023, we have been able to collect GHC88, 159, 002.12 exceeding the revenue target by GH¢3,105,202 with the breakdown as follows: Import revenue collected is GH¢1,231, 450, 85 exceeding the target of GH¢363, 952.85. Petroleum tax revenue collected is GH¢86, 927,27 which has also been exceeded by GH¢2, 741,249, 27.”

“Most of the revenues from import were accrued from interceptions of smuggled goods and seized vehicles with tampered chassis at the Kulmasa, Bole, and Yapei checkpoints “Assistant Commissioner Labujata explained.

The Retired Assistant Commissioner said she devoted thirty-two years of her life executing the job with love and dedication leading to some previous achievements and that of the Damongo Collection.

According to her, although collection points are given a revenue target, she literally begged for a revenue target because she was determined to work.

“Damongo Collection was just Bole station and one station cannot make a collection. So, I applied for the handing over of the posts and checkpoints within the Savannah Region. Then, I started getting excuses as to why those bases can’t be handed over but thankfully, in January same year, they were handed over to us”, Madam Labujata said.

According to her, she accepted the challenge to move up North from the Tema Collection on March 22nd, 2021 to establish the Damongo Collection with limited resources. She said she had to apply for every single resource including a total number of 30 members of staff with 20 being on contract that is supposed to be for about 100 officers.

The retired Assistant Commissioner of GRA lamented that officers including new recruits, continue to refuse postings to Collections, especially Damongo without any repercussions.

“Since the creation of the Collection, there have been three major postings. In the first one, three sportsmen were posted and they all found their way back to Accra while for the other two, a few officers reported and asked for permission to go and prepare and never came back while the rest never reported at all and there were no repercussions”, She bemoaned.

She thus appealed to the Authority to support the Damongo office especially in the area of accommodation for staff.

She said the Collection was given a 10-acre parcel of land that needed serious attention for its development to accommodate officers.

“Apart from officers renting at a very high rate, their safety is sometimes threatened, especially when they have made some arrests, hence the urgent need for official accommodation for them.”

As the first commander for the Damongo Collection point, Madam Labujata Hamidu revealed that she had to apply for every resource including her own vehicle, a driver, and an accountant, and all of them were not immediately granted, yet she made do with what was available and exceeded her revenue target.

She has handed over the Command to her second in Command, Kudlo A. Nyame as the new Damongo Collection Sector Commander of GRA, who also pledged to make good use of the mentorship he received from her predecessor.

The Commissioner of the Ghana Revenue Authority Customs Division, Seidu Iddrisu Iddisah commended her for her dedication to duty and achievements. He urged officers, particularly junior ranks to emulate her.

While acknowledging the success of Madam Labujata Hamidu, the Commissioner noted that ” leadership is to make sure that you use the scarce resources to think outside the box to solve the problem, and the amount of revenue she has collected so far this year, even exceeding the target just before the end of the year shows that she is a good manager.”

“Like any other manager, you are given a task without the resources. I always tell Sector Commanders that if resources were enough for everybody, there wouldn’t have been the need for the word leader”, the Commissioner stated.

The company said it entered into a contract with the govern­ment of Ghana on August 4, 2015 to provide technical services to ensure efficient clearing of cargoes through the sea and airports.

However, in the course of delivering the services under the NSW, the GRA and the Ministry of Finance terminated the contract.

West Blues said they initiated the instant action against the defen­dants after attempts to recover out­standing debts through its counsel proved futile.

West Blue is claiming from the defendants the recovery of GH¢149,357,692.71, the outstanding fees payable to the plaintiff (West Blue) for services rendered to the Ministry of Finance and the GRA under the contract dated August 4, 2015 for the provi­sion of the National NSW contract from September 2015 to September 2017, at an applicable rate of 0.35 per cent of the final invoice value of import consignments entering into Ghana through the seaports, airports and land borders.

The company wanted to recover GH¢76,097,917.58, being the out­standing fees payable to the plain­tiff for services rendered to the Ministry of Finance and the GRA under the NSW contract from October 2017 to December 31, 2018, at an applicable rate of 0.28 per cent of the final invoice value of import consignments entering into Ghana through the seaports, airports and land borders.

West Blue are seeking to recover GH¢64,092,215.07, being the outstanding fees payable to the plaintiff for services rendered to the Ministry of Finance and the GRA from January 1, 2019 to May 2020 at an applicable rate of 0.28 per cent of the final invoice value of import consignments entering into Ghana through the seaports, airports and land borders.

West Blue is also claiming the recovery of the equipment it procured to perform its obligations under the NSW contract and the additional services it rendered from January 1, 2019 to May 2020 at the request of the Ministry of Finance and the GRA, which the defendants have retained or in alternative, re­covery of US$425,000.00, being the value of the equipment it procured to perform its obligations under the NSW contract and the additional services it rendered from January 1, 2019 to May 2020, which the defendants have retained.

In its statement of claim, West Blue stated that it entered into a contract with the Government of Ghana, acting through the Ministry of Finance and the GRA on August 4, 2015 for the provision of NSW contract.

It said the that the NSW con­tract was executed by the parties in furtherance of the government’s policy of adopting a National Elec­tronic Single Window as a means to, among others, increase efficiency through time and cost savings for traders in their dealing with govern­ment authorities for complying with the commercial, financial, regulato­ry, transport, and logistics require­ments for moving cargoes across national or economic borders.

The plaintiff stated that per the terms of the NSW contract, it was required to provide certain technical services and support activities to the GRA and related agencies in support of the government pro­gramme.

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“We are pleased to announce that the closure of our shops, which was intended to send a signal to the government and GRA, has been suspended with immediate effect,” Takyi Addo, the Head of Communications of the Association said at a press conference.

The Association says it decided to call off the industrial action after engaging the Ghana Revenue Authority and the Customs Division.

The group added that, the Customs Division also addressed the sentiments raised by the dealers by progressively recalling its officers who were earlier deployed to various shops in Accra to police the dealers.

Takyi Addo, however, put on record that the Association was not opposing the electronic value-added tax policy, but rather how the decision was taken and enforced.

Background

The Ghana Revenue Authority designed and implemented a value-added tax policy as part of its innovative way of generating revenue for the state.

In implementing the policy, GRA employed the use of deploying staff and customs officers to police, monitor and collect revenue from the shops of the dealers.

According to the Abossey Okai dealers, the decision was taken on the blind side of their leadership.

The Abossey Okai Spare Parts Dealers Association out of displeasure planned a sit-down strike against the Ghana Revenue Authority to oppose the decision solely taken by the GRA.

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Through the VAT enforcement exercise, the taskforce found out that many businesses had not registered with the authority, while those that had registered were either not issuing VAT invoices or were engaged in selective issuance of VAT invoices.

Consequently, the GRA has indicated that it will intensify its enforcement exercises to compel non-tax-compliant businesses to honour their tax obligations in line with the law.

Head of the Accra Central Enforcement Unit of the GRA, Assistant Commissioner, Joseph Annan, speaking to journalists in Accra after one of the enforcement exercises, said: “What it means is that, we have to do a lot more compliance checks.

“Businesses operating in the country that have failed to register with the authority or comply with tax laws will be compelled to do the right thing,” he said.

Enforcement

The GRA has since June, this year, stepped up its tax compliance and enforcement efforts in a bid to meet its target of collecting GH¢106 billion for 2023, representing a year-on-year growth of 40 percent.

To meet this target, the authority had indicated some of the measures it would employ to include the full automation of its operations and deployment of technology in revenue collection.

The latest exercise is the VAT enforcement exercise, which saw the team visiting 10 companies within the La Nkwantanang and Adentan municipalities.

The taskforce also included personnel from the Criminal Investigation Department of the Ghana Police Service.

Invitation

All the managers of the various businesses visited were invited to assist the GRA with investigations pertaining to the non-issuance and selective issuance of VAT receipts as part of efforts to ensure voluntary compliance with tax laws.

Section 41 of the Value Added Tax Act mandates businesses to consistently issue VAT invoices to their patrons.

Failure to comply with the requirement of the law is tantamount to a violation of the law while customers who fail to obtain an invoice over transactions that attract VAT also violate the law.

Extended focus

Mr Annan said the authority had put in place a number of measures to ensure maximum compliance of all tax laws.

He said the taskforce had extended its focus beyond VAT enforcement to ensure complete tax compliance.

“For now, we are not limited to VAT because in order to achieve the target, we have to look at all tax types.

Taxation encompasses VAT, our scrutiny will encompass all applicable taxes for any given taxpayer we visit.

We are not limiting our exercise solely to VAT,” he said.

In line with this, he said the taskforce now conducted a comprehensive examination of the taxpayers to identify their eligibility for various tax categories.

“This is how we intend to enhance our tax collection efforts. It is not solely about VAT compliance. It’s about adhering to all tax categories,” he said.

He called for citizens’ support and collaboration to enable the GRA to meet its revenue collection target as “every taxpayer must contribute to build the nation.”

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The Commissioner in charge of the domestic tax revenue division of the GRA, Edward Gyambra, emphasized that the expansion of the tax base does not entail the creation of a new tax.

To him, it is fair for businesses generating income to contribute their share to the national coffers.

He explained that the GRA is simply expanding the tax net to include all businesses, regardless of whether they operate online or offline.

“Some people doing business online is something that is on the blog globally and if you remember last year, we also launched our e-commerce taxation and as part of getting online people to pay taxes all these players will be brought to book to ensure that they also pay their bit of taxes to the country.

We are expanding the tax net, and it doesn’t mean we are introducing a new tax. If you are generating income from any business, that income is taxable and so if you sit behind your computer and create content and generate income from that, we will tax that income,” he added.

The taxation of income generated in the digital realm has been a topic of discussion in various countries, including Ghana.

While traditional sources of income are relatively straightforward to tax, digital earnings present distinctive challenges.

The GRA’s decision to consider taxing bloggers and similar entities has sparked numerous concerns.

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Mr Adjei is demanding that the Commissioner General furnish him with auction information covering the period from September 2022 to the present date, encompassing recent auction activities conducted by the GRA.

The specific details requested by Mr. Adjei include particulars and clear descriptions of all auctioned items; quantity of all auctioned items; and prices at which the items were auctioned.

Other details include the date of each auction sale as well as the full names, addresses, and telephone numbers of successful bidders.

In a letter addressed to the Commissioner General, Mr Adjei cited sections 1 and 18 of the Right To Information (RTI) Act, 2019 (ACT 989) as the legal basis for his request.

The petitioner expressed his commitment to abiding by the laws of the country and emphasized the importance of transparency in public auctions.

Mr. Adjei reminded the Commissioner General that the Customs Act, 2015 (Act 891) explicitly mandates the public nature of auction sales.

He asserted that information related to such transactions should not be withheld on any grounds, emphasizing the necessity of openness by the law.

He also urged the GRA to treat the request with urgency, stating that prompt access to this information would enable him to plan his next steps.

He expressed confidence in the customary cooperation of the GRA and thanked the Commissioner General in anticipation of a swift response.

This move by Eric Adjei underlines the growing awareness and exercise of citizens’ rights to access information as enshrined in the RTI Act, reinforcing the principles of transparency and accountability in the public domain.

The GRA is now faced with the responsibility of responding to this request by the legal provisions outlined in the RTI Act.

According to TAGG, GRA wants Ghanaians to believe that the government is no longer taking import duties through the customs system but has been able to successfully generate revenues through its taskforce.

This comes on the back of GRA’s statement, which dismissed claims that it is deliberately harassing members of the Ghana Union of Traders Association (GUTA) and TAGG over tax collections.

GRA explained that, the operation to collect all taxes owed to the state is part of measures to ensure that government rakes in tax revenues to undertake developmental projects.

The statement also said it has raked in about ¢105,000 within two months through upfront payments, with a corresponding increase in VAT registration.

But TAGG has said they are unhappy over attempts by GRA to misinform the public against the trading community.

“Unfortunately, GRA misled the public into believing that traders do not follow tax regulations and engage in smuggling under declaration, misdescription, and concealment,” Portions of a statement issued by TAGG read.

According to them, their concerns over harassment and extortion were not addressed by GRA.

“In this context, business associations’ complaints about extortion and harassment were not addressed. We would like to take this issue one at a time and ask the Commissioner General and the Commissioner of Customs if indeed all of these containers were able to evade their notice and leave the port, only to be arrested later and lauded by Ghanaians, as they prove in their release statement with examples,” the statement added.

Meanwhile, TAGG has warned traders would never cooperate with GRA taskforce if they continue operating with such impunity.

“Between 2000 and 2008, Ghana served as a trading hub for a number of bordering countries, including Nigeria, Benin, Togo, Burkina Faso, and Ivory Coast. As a result of so-called GRA taskforce using our highways for harassment and extortion, these countries are steadily lowering their flow of doing business in Ghana. 

All we are asking is that, if GRA chooses to rely on these monitoring teams as they claim, they should do so without victimising innocent importers and traders who would be subjected to extortion, intimidation, and harassment at the end of GRA’s legitimate mandate,” TAGG urged.

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Spokesperson of the group, Takyi Addo, said he does not fathom why the authority will deploy persons to monitor their sales.

To voice out their displeasure, spare parts dealers at Abossey Okai have closed their shops to protest.

“GRA met with our leadership to inform us that officials will be sent to monitor us on a daily basis. We disagreed and they told us they would rethink the exercise. Later, they sent a letter informing us about the date they would start the exercise.

As they have been rejected in the Ashanti Region and by GUTA, we here at Abossey Okai won’t allow GRA to send officials to monitor us. Is that the best tactic to collect taxes? We do not agree so we have closed down all of our shops to protest,” he said on Accra-based Neat FM.

He noted that, as law-abiding citizens, they will not resort to violence.

“If we see anyone who is not one of us, we will chase them out and if they refuse we will report them to the police,” he added.

Mr. Addo lamented that, the obnoxious taxes piled on traders have negatively affected the business sector.

He added that, there is no need for GRA’s Compliance and Invigilation exercise because they are tax compliant.

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The shop owners have been involved in issuing selective VAT invoices and have failed to adhere to tax compliance regulations, leading to substantial revenue losses for the state.

The GRA taskforce conducted a comprehensive inspection of 11 retail shops situated in the Lashibi and Spintex areas.

Assistant Commissioner, Joseph Annan who heads the Accra region of the GRA, told the media that appropriate sanctions will apply.

“Our exercise was a combination of test purchase and compliance checks. Once a business falls foul of the law, then it comes with some form of punishment. The VAT Act prescribes the options that are available to us by way of punishment. That is where the preemptive assessment comes in so that it will form the basis for future punishment. So, we are inviting them to the office and when they come, the CID will take over.”

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According to the Authority, the operation to collect all taxes owed the state is part of measures to ensure that government rakes in tax revenues to undertake developmental projects.

GUTA in a press conference accused GRA of harassing its members at various ports and market centres.

But in a press statement copied to Adomonline.com, GRA said it is acting within the law.

The statement also said it has raked in about ¢105,000 within two months through upfront payments with a corresponding increase in VAT registration.

Below is the full statement: