Procurement and accounts officials are asking for a provision in the financial administrative regulations that mandate local government authorities to deduct Value Added Tax (VAT) from goods supplied by unregistered suppliers.
The regulatory framework directs government, ministries, departments and agencies to deal only with VAT-registered traders in purchases and procurements.
However, non-availability of VAT registered traders in rural communities impedes the compliance with the law.
In its bid to enhance compliance and increase revenue mobilization, the Ashanti Regional VAT Service has been engaging accountants, auditors and purchasing officers in a sensitization programme.
Participants at a forum in Kumasi suggested the district assemblies register with the VAT Service in order to collect taxes on its behalf.
Ashanti Regional Acting Head of the VAT Service, Emmanuel Akpaku welcomed the suggestion, saying though the law is silent on the suggestion, it would be considered at the highest management level.
He however noted local assemblies engaged in commercial ventures like guest houses, conference facilities and restaurants, are required to register to charge VAT.
Meanwhile, Mr. Akpaku tells Luv Biz Report the Ashanti region is on course to achieve targets for the year. He says the region is currently five percent above target.
Story by Kofi Adu Domfeh
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