REVENUE AGENCIES EXCEED TARGET (PAGE 57, MARCH 1, 2010)

THE three revenue agencies — made up of the Customs, Excise and Preventive Service (CEPS), the Value Added Tax (VAT) and the Internal Revenue Service (VAT) — last year collected GH¢4,567.00 million.
Out of the figure, GH¢2,544 million, comprising domestic tax, was mobilised by the IRS and VAT.
This constituted an increase of 55.7 per cent against a projected 49 per cent in the 2009 budget.
The Commissioner of the IRS, Major Dan Ablorh Quarcoo (retd), made this known at this year’s special joint IRS/VAT management retreat at Koforidua during the weekend.
The meeting, the first to be jointly organised by the two revenue mobilisation agencies, on the theme: “Integrating the Revenue Agencies: Prospects and Challenges”, was to take stock of their achievements and challenges last year and adopt strategies for 2010.
According to Major Ablorh, total national tax revenue was expected to grow by 20 per cent this year, while domestic revenue was also expected to rise by 26.5 per cent, adding that CEPS had targeted to collect GH¢5,702.00 million out of which the IRS and VAT would rake in GH¢3,210 million.
He stated that the target set, however, faced challenges, one of which was how to avoid the negative impact of the integration of the three revenue mobilisation agencies such as making revenue losses.
Major Ablorh, therefore, called on the staff and management of the revenue mobilisation agencies to be committed and work hard to achieve the target.
The Chairman of the Revenue Agencies Governing Board (RAGB), Mr Ernest Kwesie, said the IRS/VAT and CEPS had over the years consistently increased revenue mobilisation to enable the government to meet its numerous obligations to the people.
He said with the integration of the revenue agencies, services rendered would improve voluntary compliance of tax obligations to improve revenue mobilisation.
The Executive Secretary of the RAGB, Mr Samuel Sallas-Mensah, told the gathering that the government would be expecting GH¢6,072.2 million revenue from the three agencies this year.
He stated that although that would be a difficult task, especially for the IRS because of the expansion of the tax-free threshold from GH¢240 to GH¢1008 per annum, the Pay-As-You-Earn (PAYE) tax which had been a reliable and regular source of revenue over the years, coupled with the crop of experienced, dedicated and committed staff, would make it possible to increase revenue mobilisation.
On the integration of the three revenue mobilisation agencies, Mr Sallas-Mensah said five thematic groups set up to work out its modalities were working feverishly in that respect.
He stated that full integration to create the Ghana Revenue Authority (GRA) would be achieved in 2011 for the President to appoint a Commissioner-General to oversee its operations.