The Ghana Revenue Authority (GRA) has intensified efforts to address non-compliance in Value Added Tax (VAT) collection with the launch of a new Compliance and Enforcement unit within the Domestic Tax Revenue Division.

This move follows assessments showing that roughly 60 out of 100 businesses either fail to remit VAT or remit it incorrectly, resulting in significant losses to the state.

Speaking to JoyBusiness, GRA Commissioner General Anthony Kwasi Sarpong explained the need for urgent action.

“We have done a lot of assessment in the last few months, especially in December, and found out that about six out of 100 businesses we visited don’t pay VAT, others take from customers but fail to remit to the GRA, and hence there’s a need for action.

"So the mandate of this team is to improve VAT payment and encourage voluntary compliance with the tax handle,” he said.

The authority says VAT, if applied fairly and effectively, has the potential to significantly boost the country’s revenue mobilisation.

The 26-member enforcement and compliance team is expected to close the wide gap in VAT collections before the end of the year.

Dr Martin Yambourigya, Commissioner for Domestic Tax Revenue, charged the newly inaugurated team to act firmly and professionally while safeguarding taxpayer rights.

“The team must ensure that compliance is enforced without compromising the rights of taxpayers,” he said.

He also urged taxpayers to proactively engage with the GRA on all tax-related challenges, emphasising collaboration as a key strategy to ensure effective VAT collection.

The launch of the unit signals GRA’s commitment to reducing revenue leakages, promoting transparency, and enhancing voluntary compliance across the country.