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BusinessGRA surpasses 2023 target with GHS113bn

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GRA surpasses 2023 target with GHS113bn

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In the 2023 fiscal year, the Ghana Revenue Authority (GRA) achieved a notable milestone by collecting GH¢113.06 billion, surpassing the revised target of GH¢109.19 billion.

This accomplishment reflects a substantial nominal growth rate of 49.3%, exceeding the anticipated growth rate of 44.2% compared to the 2022 fiscal year.

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The initial task for GRA was to collect a total tax revenue of GH¢106 billion for the 2023 fiscal year, representing a remarkable 40.0% growth over the GH¢75.71 billion collected in the 2022 fiscal year.

According to the Commissioner-General of GRA, Rev. Dr. Ammishaddai Owusu-Amoah, the revenue target was adjusted upward to GH¢109.19 billion in the 2023 Mid-Year Budget, reflecting a 3.0% increase or GH¢3.20 billion. This adjustment led to a growth rate of 44.2% over the 2022 collection.

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Rev. Dr. Owusu-Amoah expressed satisfaction, highlighting a year-on-year growth of 49.3%, the highest in the last two decades, and the highest tax-to-GDP ratio of 14.1% in the past six years.

Key details of the 2023 revenue mobilized include a 54.0% growth in domestic tax revenue, contributing 73% to the total revenue. Tax revenue from international trade (Customs) grew by 38.2%, contributing 27% to total tax revenue.

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The Commissioner attributed the outstanding performance to intensified compliance activities, high Corporate Income Tax (CIT) payments from banks, increased revenue from 1% withholding tax at ports, and the resumption of full-scale collection of tax stamps and Vehicle Income Tax (VIT) payments.

Other contributing factors included effective classification and valuation of goods, improved monitoring to curb leakages, and the Extractive sector’s contribution, particularly from mining firms.

The Commissioner emphasized the positive impact of the Extractive sector, with mining firms leading in Corporate Income Tax contributions. The total contribution from these companies grew by 39.6%, reaching GH₵6,135.80m in 2023.

The VAT sector witnessed significant growth, with Domestic VAT experiencing a year-on-year increase of 61.9%, although falling short of its target by 9.9%. Import VAT exceeded the target by 3.5%, recording a growth of 53.3%. The E-Levy tax on electronic transactions also saw an 85.7% year-on-year growth.

The Commissioner-General expressed gratitude to staff, taxpayers, and stakeholders for their contributions to the remarkable growth in tax revenue. He urged eligible individuals and businesses to contribute their fair share to Ghana’s socio-economic development. The GRA affirmed its commitment to expanding tax initiatives outlined in the 2024 Budget Statement, engaging stakeholders for seamless implementation.

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