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Economy

CEPS probes huge target shortfall

The Customs, Excise and Preventive Service (CEPS) is investigating a deficit of GH¢48 million recorded on a target for Value Added Tax (VAT) on imports from January to August, this year. The Commissioner of CEPS, Mr. Emmanuel Nmashie Doku, who on Wednesday appeared before the Justice S.G. Baddoo Committee probing irregularities at CEPS, said it was difficult to assign the reasons immediately for the shortfall. That is because the Import VAT is closely related to the other taxes which have exceeded their target as of August, this year. Mr. Doku mentioned the other taxes as National Health Insurance Levy (NHIL), Petroleum Levy and duties, which, he said, had achieved positive results. The commissioner said NHIL recorded 5.56 percent above its target as of August while the Petroleum Levy and duties achieved 3.48 and 1.49 percent respectively above the set targets. He said with that trend he was optimistic that the service would achieve its target before the end of the year. Mr Doku said CEPS was in the process of computerizing its operations to facilitate the process of clearance of goods at the ports. He said CEPS had reduced the number of days used to clear goods at the ports from two weeks to three days. Mr. Doku said the computerization had brought transparency into the activities of the service and also helped to establish a complete audit trail of all transactions and made retrieval of information on transactions easier than when operations were carried out manually. He explained that presently officers who misconducted themselves could easily be found out and the necessary disciplinary action taken against them. He added that one area that was left to be computerized was the valuation of goods and vehicles. He gave the assurance that all operations of the service would be automated soon to minimise forgery and eliminate the activities of 'goro boys' (Middlemen). He said that involved the integration of the CEPS data into the business process of the Driver, Vehicle and Licensing Authority (DVLA) and further pointed out that the computerization would be replicated in Cape Coast, Koforidua and Kumasi where a lot of vehicle registration were taking place, to maximise revenue generation. He said a Satellite Tracking System had also been introduced by CEPS to trail vehicles in transit to prevent them from dumping their goods in the country, since by international law goods in transit do not attract taxes. Source: Daily Graphic

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