Assistant Commissioner at the Ghana Revenue Authority in charge of Enforcement for Accra Central, Joseph Annan, has clarified that contrary to popular belief among taxpayers in the informal sector, the fees and levies collected by Metropolitan, Municipal, and District Assemblies (MMDAs) are not the same as the taxes that must be filed with and paid to the GRA.
During a tax sensitisation campaign at Agbogbloshie Market in the Greater Accra Region on Tuesday, September 10th, Mr. Annan clarified to the media that fees and levies collected by the MMDAs pertain to ground rent payable to local authorities, while taxes are based on the income earned by individuals and businesses for the nation’s development.
“The AMA owns the land and the large shops, so they pay ground rent and related fees. These charges for using AMA property are different from taxes, and that’s why we’re here to explain it so they can better understand. When you use something that belongs to the AMA, you must pay for it, but taxes are collected for the country’s development and vary depending on the type of work you do,” explained Mr. Annan.
He stated that the GRA acknowledges the need for a friendly relationship with taxpayers in order to address the lack of understanding of the tax system and promote continuous education to prevent challenges in tax collection.
“We have recognised the importance of fostering a positive relationship between the GRA and taxpayers to make our work more efficient. In one way or another, we are all taxpayers. Many of us fall behind on tax payments due to a lack of understanding of the tax system.”
“So continuous education is crucial to ensure smooth tax collection, as taxes are essential for the country’s development,” he said.
Mr. Annan outlined several challenges GRA officials face in tax collection, including verbal abuse from some taxpayers regarding how taxes are used. However, Mr. Annan believes that paying taxes reduces the government’s reliance on external borrowing to meet its development goals.
He further emphasised that their frequent outreach to the informal sector is driven by its limited understanding of tax matters and poor record-keeping practices.
“When looking at the tax-paying population, we have both the informal and formal sectors. We face fewer challenges with the formal sector compared to the informal sector because the formal sector has a better understanding of tax matters and maintains more accurate records than the informal sector.”
“Due to the lack of proper record-keeping, we often have to estimate their earnings, which they frequently disagree with. Therefore, we urge them to adopt practices that will assist our work and prevent tax overestimation.”
Esi Sam, Chairperson of the Society of Women in Taxation (SWIT), underscored the need for continuous education to encourage tax compliance and urged the media to collaborate with SWIT and the GRA in educating the public.
The market sensitisation also gathered some officers from the Accra Metropolitan Assembly (AMA), who helped in highlighting to the traders the difference between levies collected by the Assembly and taxes.
In response, the traders expressed their gratitude to SWIT and the GRA for their efforts in clarifying the difference between taxes and other levies, as well as explaining the various types of taxes.
The program, organised by SWIT in partnership with GRA, is part of a series of campaigns aimed at bringing the informal sector into the tax bracket.
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