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NCCE holds
forum on taxation in Takoradi
Takoradi March 14, GNA- Mr Toy Sarpong, Head of Clients
Service at the Takoradi Valued Added Tax (VAT) Office said
the country's tax administration had been restructured over
the last few years to increase internally generated revenue
to the State.
He was speaking at an education programme on taxation
organized by the Shama-Ahanta East Metropolitan Office of
the National Commission on Civic Education (NCCE) in
Takoradi.
Mr Sarpong said it was against this background that the VAT
was introduced to replace the sales and service taxes, which
were collected by the Custom, Excise and Preventive Service
(CEPS) and the Internal Revenue Service (IRS).
He said VAT was an indirect tax, which was charged on
consumption expenditure and was levied on the valued added
created at the various stages in the production and
distribution process of a product to which the tax was
applicable.
Mr Sarpong said the current VAT rate of 15 per cent and 10
per cent was paid into the consolidated fund, 2.5 per cent
into the Ghana Education Trust Fund and a further 2.5 per
cent into the National Health Insurance Scheme.
He said a Flat Rate Scheme of three per cent for retailers
whose annual turnover fell within 100 million and 1. 2
billion cedis only was yet to be implemented.
Mr Sarpong said tax offences that attracted penalties
include failure to register, issue tax invoice and maintain
proper records as well as evasion of tax payment.
He said these offences as well as the reluctance of
government institutions to purchase from VAT registered
traders and inadequate logistics were some of the factors
hampering effective collection of the tax.
Mr Samuel Atta Berfi, a Principal Inspector of Tax at the
Regional Office of the IRS, advised the public to pay their
taxes on gifts.
He said the gift tax was not imposed on gifts from one
member of a family to another by will or intestate.
Mr Berfi said gifts for religious purposes or for the best
of the public did not attract tax.
He said the Regional IRS was expected to collect a little
over 242 billion cedis out of the national target of 9.3
trillion cedis this year.
Mr Daniel Afropong, Regional Director of the Public
Utilities Regulatory Commission, who chaired the function
appealed to the public to pay their taxes to enable the
country to move forward.
He said the tax net should be widened to bring in more
taxpayers and urged revenue collecting agencies to be honest
to dispel public perception that they are corrupt.
Mr Orpheus Mensah, Metropolitan Director of NCCE, said
people could demand social infrastructure and other
facilities and hold government accountable on it's spending
when they paid their taxes.
He the citizenry to show interest in the development of the
country and to co-operate with their elected leaders as good
citizens to achieve this national objective.
Nana Asante Krobea, a Principal Collector of CEPS, said the
service was to collect 16 trillion cedis as revenue this
year.
GNA
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