https://www.myjoyonline.com/csos-urge-government-to-curtail-tax-exemptions-to-help-meet-revenue-targets/-------https://www.myjoyonline.com/csos-urge-government-to-curtail-tax-exemptions-to-help-meet-revenue-targets/

Some civil society groups are calling on government to cut back on tax exemptions it offers to companies operating in the country if it will succeed in raising adequate revenue for the development of the country.

The Legislative Advocacy Working Group on the Tax Exemptions Bill 2021 currently before Parliament in a statement noted the country could be losing huge sums of potential revenues due to poor management of tax exemptions.

“We believe the government’s revenue mobilisation strategies through the digitisation programmes; TIN registration, Revenue Assurance and Compliance Enforcement (RACE) etc., are excellent but they would not result in the kind of revenues envisaged without managing and curtailing tax exemptions as a priority,” the groups said in a statement.

The CSOs that constitute the Legislative Advocacy Working Group include Tax Justice Coalition (TJC), Parliamentary Network Africa (PN Africa), and the Ghana Anti-Corruption Coalition Ghana (GACC), with support from Oxfam.

Ghana provides a number of tax exemptions and incentives to encourage private investment and reduce the tax burden on certain companies operating in the country.

These exemptions must necessarily be approved by Parliament first after the companies apply to the Finance Ministry.

Foreign companies have reportedly been the largest beneficiaries, but some local ones also do get it. Statistics indicate that the state loses an amount equivalent to 12.5% of all taxes collected annually to tax exemptions given to companies by government and Parliament.

Last month, the Finance Ministry introduced the Exemption Bill 2021 to parliament for approval. The Bill, when approved is expected to harmonise the tax exemption and incentives regime in the country and help make it more efficient.

An earlier attempt to get it approved in 2020 failed after the life span of the previous Parliament expired before approval processes were concluded. The CSOs are urging government to prioritize the bill and get the necessary approval quickly this time around.

“Tax exemptions are assured revenues, and should be accounted for through a comprehensive management under an Exemptions law,” the statement from the CSOs said.

In July this year, Deputy Finance Minister, Abena Osei Asare, told the Business Edition of PM Express that the Bill is part of the efficient and effective measures the Finance Ministry wants to introduce in revenue mobilization.

Madam Osei Asare said the bill, when passed, would assist in achieving “the revenue target without necessarily having to increase taxes in the course of the year.”

She noted that the Bill though sent to Parliament in 2019 was withdrawn to be amended.

This she said was because “we realized we needed to engage more of our stakeholders” in putting the bill together, she told Joy Business’ George Wiafe. That engagement has been done now.

Madam Osei Asare said the Tax Exemption Bill will comprise tax waivers given to local and foreign companies to encourage increased investment and more foreign direct investment in the economy.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.


DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.