GRA pushes for comprehensive tax policy reforms

The Ghana Revenue Authority (GRA) has joined the growing chorus of voices calling for comprehensive policy reforms to improve the country's tax structures.

The Commissioner-General of the GRA, Julie Essiam, emphasized this need for reform during her speech at the 12th Annual International Tax Conference, which was held by the Chartered Institute of Taxation in Ghana.

Commissioner-General Essiam emphasized the urgent need for a reevaluation of the current Value Added Tax (VAT) framework, which she described as burdensome and difficult for both individuals and businesses to traverse.

She highlighted the importance of building a tax environment that is not just simple but also accessible to everybody, pointing out that the intricacies inherent in the current VAT system are a substantial obstacle to compliance.

“These policies must be simple and easy to understand by everyone and all of us. As we look into the future as a revenue authority, we believe that the future tax policies should focus on the simplification of tax handles.”

“For example, we must work towards having a simple rate for VAT and avoid the perceived cascaded effect of the simplicity of rates under the current regime.”

As part of her recommendations, Essiam emphasized the need for a simplified VAT rate.

She added that the current regime is frequently viewed as having a cascading effect because to the intricacy of its rates. 

She went on to elucidate on the possible benefits of such reforms, claiming that a review and simplification of the tax policy framework might lead to a major improvement in compliance, particularly among private sector enterprises.

“Tax policies must therefore be flexible enough to grow and optimize tax revenues in tandem with private sector development," she added.

Source: Lead News Online