An estimated 5.6 million cedis is lost annually from the revenue collection kitty of Metropolitan, Municipal and District Assemblies (MMDAs).
This was revealed in a site analysis of the tax mobilisation of MMDAs by the Office of Local Government Service in partnership with US-based fintech company, Javolin. This partnership is aimed at establishing a tax tracking platform that is to be piloted across 7 municipalities and districts.
Speaking to Joy Business, Head of Service at the Ministry of Local Government, Nana Ato Arthur revealed the partnership will see Javolin plug billions of cedis worth tax loopholes across municipalities and districts in the Greater Accra Region.
"It is obvious that MMDA's have not been meeting their revenue targets nor are they performing well when it comes to internally generated funds. This continues to impact development of infrastructure and some social interventions. We at the Office of the Local Government Service want to change this by partnering with Javolin Group. They the technology and technical knowhow to deal with this major problem we face," Nana Ato Arthur revealed.
Vice president of Javolin, in charge of operations, Phil Dadzie, in a presentation to stakeholders revealed the plan is to establish a tax system intentionally designed to achieve solid economic growth and sustainable development for Ghana.
"Our vision is to help all MMDAs to achieve their revenue targets. We encourage all MMDAs to come on board since depending on the central government is not predictable and reliable. It is expected that by the end of the first year of our operation with all 29 MMDAs in the Greater Accra Region, there would be a 50 percent increase in their current revenue figures. Revenue is expected to improve significantly by 100 percent and 200 percent by the end of the two consecutive years respectively," he assessed.
Meanwhile, Founder and Chairman of Javolin Group, Carl Powell tells Joy Business the choice of Ghana is premised on the country's readiness to expand infrastructure development through an effective tax regime.
"Our focus is to, among other things, block revenue leakages.We will bear the total cost of the design and implementation of the software and all other related expenses. The contract duration will be for 5 years with biennial extensions thereafter," Carl Powell tolf Joy Business.
About 7 MMDAs have been selected for the pilot phase of the revenue mobilization program. They include the Accra and Tema Metropolitan Assemblies, Ga South, Ayawaso West and La Dade Kotopon municipalities.
Latest Stories
-
NAPO urges Ghanaians to support NPP’s vision for national development
57 seconds -
About 95% of PWDs in Obuasi have source of livelihood – MCE
17 mins -
Immigration Service intercepts 54 gallons of fuel
19 mins -
Election 2024: Roman Fada selected as flagbearer for Ghana Freedom Party
27 mins -
Bawumia to launch Ghana’s credit scoring system on Nov. 7
31 mins -
Alan to combat galamsey with strategic youth-centred business model
35 mins -
Agona Swedru chiefs commit to ending child marriage within their jurisdiction
48 mins -
Sunyani Traditional Council endorses Bawumia – NAPO government
51 mins -
Adutwum defends double track in Free SHS, citing research and positive outcomes
55 mins -
‘Prevent and condemn illegal pressure on Judiciary’ – AG to GBA
60 mins -
Mahama alleges biased development allocation by NPP
1 hour -
Do not rely solely on foreign investments for your operations, business told
1 hour -
Boeing strike ends as workers accept new contract
2 hours -
GAF will not relent in its quest to counter external threats – GOC Southern Command
2 hours -
Election 2024: Bawumia reiterates commitment to promote sustainable mining practices
2 hours