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Lack of supervision and logistics account for low tax
collection
Accra, Nov 11, Ghanadot/GNA - Mr. John E.K Sotenga, Acting
Commissioner of Internal Revenue Service (IRS), on Tuesday told
the Public Accounts Committee of Parliament that poor
supervision and lack of logistics accounted for low tax
collection over the years.
"While in most cases, we do not have vehicles, computers and the
personnel to supervise our operations effectively to achieve our
goals, we sometimes do not do effective monitoring due to the
same reasons".
Mr. Sotenga, who appeared before the committee to answer
questions on some findings and recommendations of the 2006
Auditor-General's report, gave the assurance that adequate
measures were now put in place to reverse the trend as it had
denied the country substantial finance that could have been used
for so many development projects in deprived areas.
The Committee, which resumed its public hearings on Tuesday,
featured income generating organizations such as Internal
Revenue Service (IRS), Value Added Service (VAT), National
Lotteries Authority (NLA) and Customs, Excise and Preventive
Service (CEPS).
Institutions under the Ministry of Education and Interior that
were also billed to appear before the Committee were however
told to go and return on a later date as it was too late to
attend to them.
He said in the past years, most of the holding companies
especially building contractors had failed to honour their tax
obligations and those of their workers.
They claimed they had not been paid for the jobs they had
executed adding "we have reminded them that failure to pay tax
promptly can attract 30 percent penalty."
He said they had not been able to improve on property rate
collection because of dishonesty from property owners when he
was asked why an Auditor-General report stated that 62 percent
of landlords and landladies in NIMA were not paying property
rate.
Mr. Sotenga said they had identified all the difficult
communities in the capital and were therefore mapping out
strategies to collect tax effectively in those areas.
"We are focusing so much on rent because it has come to our
notice that most landlords and landladies enjoy some much at the
expense of the state".
Mr. Seth Terkper, a Deputy Minister of Finance and Economic
Planning, said the Ministry was undertaking numerous reform
exercises in all the revenue generating organizations to ensure
efficiency and increased revenue in the coming years.
He mentioned some of the reforms as uniform budgeting and
financial accounting in all the Metropolitan, Municipal and
District assemblies and strengthening of internal controls in
various income generating services.
Mr. Terkper said effective measures were also undertaken to
address tax and customs administration in the country and to
ensure that legislation on proper record keeping was effected to
step up tax collection.
Mr. Frank Jones Abban, a Deputy Commissioner of CEPS who could
not provide answers to some of the issues raised in the
Auditor-General's report, was tasked to furnish the committee
with all the necessary information before the close of this
week.
GNA |
