The Ghana Revenue Authority (GRA), under Commissioner-General Julie Essiam’s leadership, has introduced a new compliance measure targeting the foreign income of resident Ghanaians.
This initiative aims to substitute the suspended Value Added Tax (VAT) on electricity and is designed to generate sustainable revenue beyond 2024.
According to Madam Essiam, while this measure is not novel and has been part of the law for some time, its implementation has not been effectively executed.
“We [GRA] will specifically speak to the measure that is replacing the VAT on electricity. So, the measure that we put in place is a compliance measure on foreign income of resident Ghanaians.
“This measure is already in the law, as the minister said, so it is not a new measure. The difference is that its implementation and application have not been implemented effectively,” the GRA Commissioner-General said in her brief remarks at the joint IMF, BoG and Ministry of Finance presser held in Accra on April 13, 2024.
Essiam added that “The GRA, with support from the Organization for African, Caribbean, and Pacific States (OACD), has refined the processes and structures to ensure effective implementation.
“So for us to implement this measure, we have, with the aid and assistance of the OACD, gone through sustainable processes and structures to ensure that when we implement this measure, the sustainability of this measure is going to go beyond 2024 in our revenue numbers.
“So this is the measure that, together with the Government of Ghana and our mother ministry, the Ministry of Finance, is going to take place or is going to replace the VAT on electricity.”
Speaking at a joint IMF, BoG, and Ministry of Finance press conference in Accra on April 13, 2024, the GRA Commissioner-General highlighted the refinement of processes and structures with support from the Organization for African, Caribbean, and Pacific States (OACD) to ensure effective implementation.
She emphasized that this measure, alongside the Government of Ghana and the Ministry of Finance, will replace the VAT on electricity.
Madam Essiam expressed confidence in the sustainability of this measure, stating that it will extend beyond 2024 in revenue generation.
This move is part of Ghana’s government efforts, in collaboration with the Ministry of Finance, to address the country’s fiscal needs, particularly in revenue mobilization.
Essiam affirmed her confidence that this measure will not only be sustainable but also effectively replace the projected GH¢1.8 billion revenue target, marking a significant shift in the nation’s tax policy landscape.