Low Revenue Mobilization Is Due To Avoidance Of Aggressive Tax

Madam Queronica Quartey, Policy and Campaigns Manager at Actionaid Ghana (AAG), has observed that low revenue mobilization and tax injustice in the country is due to the avoidance of aggressive tax and evasion by multi-national companies, coupled with government�s differential tax incentive policies. She noted that loss of revenue and subsequent decreased capacity in the provision of quality public service is due to multi-national companies dodging taxes, poor public knowledge on tax dodging, and the in-effective enforcement of policies on tax holidays. Madam Quartey said there is the need to mobilize and build the capacity of the citizenry on tax justice sensitivity, to create awareness on the impact of revenue loss and uneven business environment for local industries. She made the observation at a day�s Tax Justice Sensitization workshop, organized by AAG for the media, civil society organizations, government agencies and NGOs in the Brong-Ahafo Region in Sunyani. It was to educate the participants on tax justice and the need to pursue tax justice advocacy, to ensure fairness in the payment of tax. Similar workshops have been organized in the Northern and Upper East Regions. Mr Emmanuel Budu-Addo, Head of Finance at AAG, noted that the concept of tax justice was imbedded in the maxims of Equity, Certainty, Convenience and Efficiency. He explained that it is an obligation for the citizenry to pay taxes in accordance with their ability and income, and be certain about the time, manner and quantity to be paid. Mr Budu-Addo said the tax payer should not be inconvenient about the time and manner of payment, and noted any inconvenience caused would be attributed to the tax payer. He said efficiency calls on the tax system to ensure greater mobilization and lesser expenditure, because tax is a revenue generation, social function, redistribution, representation and re-pricing. Mr Budu-Addo, however, expressed concern about tax evasion and avoidance by multi-national companies through the inflation of cost, management education and procurement which is a dis-incentive to tax payers. He urged participants to join efforts to ensure tax justice was achieved in the Region through advocacy and campaign. Mr Danso Kyeremanteng, Head of Brong Ahafo Regional Small Tax Payer Unit of Ghana Revenue Authority (GRA), said as part of measures to ensure improved service delivery to the tax payer, the three revenue institutions were integrated. He noted tax justice was key in their operations, and therefore, GRA is embarking on biometric registration of the citizenry, to ensure efficiency in their operations, and be able to expand the tax bracket, track companies and individuals who are not paying taxes. Madam Christina Amarchey, Brong-Ahafo Regional Progamme Manager of AAG, said the policy advocacy and the tax justice campaign would reform and enforce tax laws. She noted that it would increase revenue for investment in developmental infrastructure and social amenities for improved standard of living for the citizenry.