Auditing and Accounting firm, KPMG is pressing on government to as a matter of urgency get proposed tax measures and legislations in previous budgets and economic statements approved and adopted to help with effective revenue mobilization.
This follows Government’s inability to unlock the full impact of some tax legislations to accelerate the achievement of the desired tax revenue to Gross Domestic Product ratio of 20% by 2027.
KPMG made the call in a response to the 2024 midyear budget review.
The Government has, in recent times passed new tax legislations which are yet to be operationalized due to unavailability of a regulation or administrative guideline to facilitate their implementation.
Key among them includes, Amendment of the VAT Regulations 2017 (L.I. 2255) to grant Exemptions on Active Pharmaceutical Inputs and Finished Products, Completion of the Regulations for the Exemptions Act, 2022 and the Development and Completion of Guidelines for the Implementation of the Emissions Levy and Environmental Excise Duty.
KPMG, however, urged the government to hasten the process to complete and fully roll out these administrative guidelines as well as adopting strong commitment towards monitoring all the administrative guidelines, and take all the necessary corrective actions where necessary, to yield the optimum revenues to government.
In its review of the 2024 mid-year budget, KPMG believes the implementation of these systems will propel its quest to rake in additional revenue whiles widening the tax net.
Considering the time it takes for tax disputes to be settled through the courts, it also proposed the use of Alternative Dispute Resolution as the overwhelming go to solution.
The statement implored the government to focus earnestly on the digitalisation of the property tax administration as this has the potential to affect revenue growth positively.
“GoG must therefore remain committed to operationalizing the ITAB by the end of the year to bring some dynamism to tax dispute resolution in Ghana.
We also wish to implore GoG to focus earnestly on the digitalisation of the property tax administration as this has the potential to affect revenue growth positively” the statement outlined.
Source: myjoyonline.com