Auditing firm, Deloitte Ghana, has urged the government to leverage its recent digitalisation drive and registration of citizens by the National Identification Authority (NIA) to expand its tax base and generate more revenue.
Again, it wants current tax policies to be strongly implemented to generate more revenue.
Government missed its revenue target of ¢43.4 billion for the first half of the year by ¢5.6 billion.
The revenue deficit was largely due to shortfalls in non-oil tax revenue which fell short by ¢4 billion representing 12.7% of target for the period and the delay in implementing some revenue measures, particularly the e-levy.
This compelled the government to revise its revenue projection for this year.
The revised budget projections for 2022 is expected to be funded by tax revenue, which is set to contribute 76.85%.
Non-tax revenue is expected to contribute 16.48%, whilst other revenue, grants and social contributions are expected to account for a total of 6.67% of the revenue.
The projections for the E-levy has also been revised from ¢6.9 billion to ¢611 million, following the low performance of the tax handle in the first and second quarters of 2022. The government also revised projections for VAT from ¢14.5 billion to ¢15.4 billion, a 6% increase in projections.
Extension of tax amnesty window
In a continued effort to mitigate the impact of COVID-19 pandemic on economic activities in the country, the government is extending the window for the recently ended tax amnesty programme to December 31, 2022.
To benefit from the amnesty programme, taxpayers in default are required to apply and settle tax arrears by December 31, 2022.
Deloitte said this extension provides an opportunity for businesses and individuals who could not meet the initial submission deadline to make applications to regularise their tax status with the Ghana Revenue Authority (GRA) by December 31, 2022.
The qualifying years for waiver of interest and penalties however remains the same (i.e prior years up to December 2020).
“With the extension of the amnesty deadline to 31st December, 2022, an extension of the tax years covered by the amnesty to include 2021 tax year would have enhanced government’s ability to rake in more tax revenue under the amnesty regime”, it added.
Latest Stories
-
Boeing strike ends as workers accept new contract
34 mins -
GAF will not relent in its quest to counter external threats – GOC Southern Command
38 mins -
Election 2024: Bawumia reiterates commitment to promote sustainable mining practices
39 mins -
Ensign Global College promotes health and community well-being at Ngmayem Festival 2024
41 mins -
Bobrisky reveals reason for leaving Nigeria
1 hour -
Tiwa Savage discloses ‘craziest thing I’ve ever done for love’
1 hour -
US states worried about election unrest take security precautions
2 hours -
Modi condemns violence after Canada temple incident
2 hours -
Barcelona hit by new flood as rescuers search Valencia basement car park
2 hours -
Labadi Beach Hotel pays over GH¢16m as dividend to SSNIT
2 hours -
Elon Musk can keep giving $1m to voters, judge rules
2 hours -
Election must not divide us, government will protect each citizen – Akufo Addo
3 hours -
Novel way to beat dengue: Deaf mosquitoes stop having sex
3 hours -
Trial begins over beheading of teacher who showed Prophet Muhammed cartoon
3 hours -
‘See you soon’ – Bobrisky jets out of Nigeria
3 hours