GRA pushes for comprehensive tax policy reforms to boost compliance

The Ghana Revenue Authority (GRA) has added its voice to the growing calls for comprehensive policy reforms to amend the country’s tax systems.

This call for change was strongly emphasised by the Commissioner-General of the GRA, Julie Essiam, during her address at the 12th Annual International Tax Conference, an event organized by the Chartered Institute of Taxation, Ghana.

Commissioner-General Essiam pointed out the pressing need for a reevaluation of the current Value Added Tax (VAT) structure, which she described as cumbersome and challenging for both individuals and businesses to navigate.

In her remarks, she underscored the importance of creating a tax environment that is not only straightforward but also accessible to all, stressing that the complexities inherent in the existing VAT system are a significant barrier to compliance.

“These policies must be simple and easy to understand by everyone and all of us. As we look into the future as a revenue authority, we believe that the future tax policies should focus on the simplification of tax handles.”

“For example, we must work towards having a simple rate for VAT and avoid the perceived cascaded effect of the simplicity of rates under the current regime.”

As part of her recommendations, Essiam highlighted the necessity of establishing a simplified VAT rate. The current regime, she noted, is often perceived as having a cascading effect due to the complexity of its rates.

She further elaborated on the potential benefits of such reforms, arguing that a review and simplification of the tax policy framework could lead to a significant improvement in compliance, particularly among private sector businesses.

“Tax policies must therefore be flexible enough to grow and optimize tax revenues in tandem with private sector development.”