The Ghana Revenue Authority (GRA) Workers’ Union has refuted claims by Vice President, Dr. Mahamudu Bawumia that businesses are being harassed in the name of tax collection.
On Wednesday, March 20, Dr Bawumia attributed this issue to the GRA's imposition of unattainable targets on its officers, leading to excessive taxation of existing businesses.
However, in a press release dated March 22, the Union explained that this ‘unfortunate’ comment undermines the hard work of the GRA staff who have contributed to the growth of tax collection in the country.
“We would like to state unequivocally that, we the workers of GRA find this statement unfortunate and consider it as an attack on the efforts of the hardworking staff of the Authority which if not discontinued, would incur the displeasure of workers, disrupt revenue collection efforts and breed industrial disharmony,” the Union said.
They added that “we wish to place on record that the unprecedented growth in Tax revenue collected in 2023 which yielded in excess of GH₵113bn is a major factor that has kept Ghana in the IMF bailout program. It is also an undeniable fact that the GRA has since the 2020 fiscal year met and in some cases exceeded the annual revenue targets despite the challenges of COVID-19.”
The Union insisted that it is unfair for Dr Bawumia to suggest that the GRA itself gives unrealistic targets to businesses when the Ministry of Finance assigns annual targets of revenue collection for them.
“Indeed, the least we expect from the Vice President, if he would not appreciate the efforts of the Authority in raising Tax Revenue, is not to put the lives of our hardworking staff at risk with such unfortunate comments,” they added.
This comes after Dr Bawumia during a meeting with the Ghana Chamber of Commerce and Industry members, on Wednesday, highlighted the limitations of Ghana's narrow tax system, noting that it often burdens the same businesses and taxpayers with various taxes.
“They are harassing businesses. That harassment is coming from the sort of targets that are created at their office. They are setting unrealistic targets. And this is because the tax base is so narrow, you say to them, 'this is your target for this month', and they are trying to figure out where do I go.”
“Then for them, it is very easy, you go back to where you had it the last time. You go to taxpayers, the people who are already paying taxes and then you have to come up with a new reason why they should pay more and so you come up with all sorts of stuff," he said.
Dr. Bawumia has thus committed himself to implementing a flat tax rate in 2025 and offering tax amnesty to all businesses once he assumes office.
However, the GRA staff stressed that the GRA administers tax per laws enacted by the Parliament of Ghana and not based on the whims and caprices of the workers.
“We also call on the President of the Republic of Ghana, H.E. Nana Addo Dankwa Akufo-Addo, the GRA Board, Civil Society organizations and all well-meaning Ghanaians to admonish political functionaries to desist from making such pronouncements and intervene swiftly as this statement possesses a major risk to revenue mobilization efforts going forward.”
“What we need as workers of GRA is policy direction and investment necessary for the transformation of GRA into a world-class Revenue Administration," the Union said.
Find statement below:
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