The government aims for a 15% GDP growth in relation to the tax



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The Ghana Revenue Authority (GRA) has been tasked with increasing the contribution of tax revenues to the national economy from 13.1 percent in 2018 to 15 percent this year.

Ghana's tax-to-GDP ratio is currently well below the average of 20% of lower-middle-income economies. Customs revenue, which was also expected to increase by 27.7 percent last year, managed only 3.9 percent, which is "catastrophic".

Between 2015 and 2017, the C / VAT efficiency ratio of 0.30% of the economic average was calculated by dividing the revenue / VAT ratio of consumption by the standard rate.

This figure is also well below the average of 0.46% of lower-middle-income countries and the average of 0.38% of lower-income countries.

"These numbers tell us that we have growth potential. The government is asking the GRA to reach a 15% tax-to-GDP ratio, instead of the estimated 13.9% for 2019, "said Finance Minister Ken Ofori-Atta at the second Congress of Delegates from GRA Workers Union (GRAWU) to Winneba.

He said the government's "Beyond Assistance in Ghana" government program was largely based on the performance of national revenues and implored tax collectors to be more responsive to their mandate to generate revenue for national development.

"The GRA, in the three consecutive years, did not meet the set revenue targets, resulting in a cumulative deficit of 4.9 million GH.

"This is very worrying, especially since we have had to resort to borrowing and, in some cases, reduce spending to make up for these deficits," said Ofori-Atta.

The Minister of Finance implored GRA staff to commit individually and collectively to plug all lost revenues to enable them to generate sufficient funds to support the government's development agenda.

He added: "I charge you to act as true income professionals whose loyalty only concerns your employer and to use this congress to bring out innovative ideas and help achieve the 15% reduction target of GDP for 2019 ".

The second GRAWU National Congress of Delegates made it possible to take stock of achievements and failures and to define strategies for the years to come.

This three-day congress focused on:Broadening the tax net to realize Ghana Beyond Aid: the role of labor ».

The Commissioner General of the GRA, Emmanuel Kofi Nti, reiterated the need for the government to seek to resolve within it the socio-economic and income-generating problems related to the decrease in the aid provided by foreign donors .

It therefore encouraged workers to continue to raise public awareness of the need for the public to meet their tax obligations and contribute to the national development quota.

He said: "Ghana Beyond Aid is achievable if we put all our shoulders to the wheel, treat taxpayers with integrity and decide not to compete with our employer for resources that rightfully belong to the state.

"Since work is the basis of revenue administration, management is counting on you to redouble efforts to broaden the tax net."

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