Commissioner-General of the Ghana Revenue Authority (GRA), says discussions are currently ongoing with government over a review of some clauses of the tax exemption laws. 

Emmanuel Kofi Nti said, calls for a review or possible scrapping of tax waivers for multinationals and mining firms to complement revenue generation are justified.

“Gov’t is reviewing the area of exemptions overall and some of them there may be some set clauses and the duration for the exemption. We are looking at a situation where the law defines itself so that no one comes asking for exemptions,” he said. 

“We are aware of the implications for exemptions because it is revenue forgone and no one wants to sacrifice its revenue, so it is an area that government is looking at,” Mr Nti said.

Emmanuel Kofi Nti was speaking to the media on recent development in Ghana's tax administrative regime.

He said all tax policy measures announced by the finance minister, Ken Ofori Attah in the mid-year budget review have been passed into laws. 

“We operate a marginal rate system in our tax system. For salaried workers or employees whose chargeable income exceeds 10,000 cedis per month, the excess above 10,000 cedis would be taxed at 35 per cent.”

He added, “Let me emphasise that it is not the whole salary which would attract the 35 per cent tax rate as speculated but the excess

The Ghana Revenue Authority (GRA) says it will be investigating churches that rake in much revenue that is subsequently not taxed.

There have been calls for the GRA to tax the services of Churches who, according to many, has been a highly lucrative business venture.

Taxing churches

Mr Kofi Nti stated that GRA will pay informants 25 per cent of a penalty against churches hiding under a fellowship to make money without paying taxes to the state.

“The Authority is conducting an investigation based on its own intelligence but has thrown the word out to the public to work as informants who should report such churches who hide under a fellowship to make money,” he revealed.

The GRA is currently tightening its tax collection loopholes as part of efforts to meet its 2018 revenue target. 

Only 1.2 million out of Ghana’s population are paying taxes. Out of the 1.2 million, one million are in the formal sector and two hundred thousand people are in the informal sector. 

This implies that the contribution of the informal sector to total tax revenue is below 5% creating a huge gap in the national revenue generation.