The Ghana Revenue Authority (GRA) has urgently joined the voices advocating for comprehensive reforms to overhaul the country’s tax systems.
Commissioner-General Julie Essiam prominently made this call during her speech at the 12th Annual International Tax Conference hosted by the Chartered Institute of Taxation, Ghana.
Commissioner-General Essiam highlighted the urgent need to reassess the current Value Added Tax (VAT) structure, which she described as cumbersome and challenging for individuals and businesses.
She emphasized the importance of creating a straightforward and accessible tax environment, arguing that the existing complexities in the VAT system pose significant barriers to compliance.
“These policies must be simple and easy for everyone to understand,” Essiam stated. “Looking towards the future, we believe tax policies should prioritize simplifying tax processes.”
Essiam recommended introducing a simplified VAT rate, suggesting that the current regime’s complexity often leads to a cascading effect.
She argued that simplifying VAT rates could enhance compliance and benefit private sector businesses significantly, potentially leading to increased investment, job creation, and economic growth.
“Tax policies must be adaptable to foster growth and optimize tax revenues in alignment with private sector development,” Essiam concluded, underscoring the potential advantages of such reforms in improving overall tax compliance and revenue generation and paving the way for a more efficient and beneficial tax system in Ghana.
