Ghana’s Finance Minister, Ken Ofori-Atta has stated that the yet to be read 2019 budget will boost corporate tax mobilization in Ghana. According to the Minister, the 2019 Budget will bring to bear several initiatives that will encourage corporate entities to file their tax returns.
Addressing some corporate companies at a budget forum, Finance Minister, Ken Ofori-Atta disclosed that lots of corporate companies have defaulted in paying taxes to the tune of GH¢3bilion. He stated that most of the PAYE companies in the country have issues in paying taxes, resulting in the government losing lots revenue.
“If we look at PAYE companies. There are about 888 of them, there is about 67 percent (540) that are paid regularly, and then another 350 that have issues and of that about 223 are not even attempting to file their tax”, he said.
Ken Ofori-Atta added that the situation provides a challenge to the Ghana Revenue Authority to design effective methods of getting the funds for the government.
“It is either the problem is from the GRA, or I don’t understand the your (companies) challenges. Because clearly GRA needs to do better”.
However, The Trades Union Congress (TUC) has charged government to use the 2019 budget to reduce the rising unbearable cost of living. The union wants the government to use the budget to support the private sector to complement government initiatives to create more jobs, overhaul the exemption system, eliminate distortions and inequities in pay across public sector institutions, address challenges of pension, health care, housing, labor administration, among others. These are contained in TUC’s proposals for the 2019 budget and economic policies of the government submitted to the Finance Ministry.
According to the union, the first post-IMF budget should lay a very strong foundation President Akufo-Addo’s ‘Ghana Beyond Aid’ agenda by outlining concrete measures that will shift the economy away from taxes to production. “We believe that our proposals in this submission will help reduce the widening inequality in Ghana to ensure a stable and peaceful society,”
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