GRA Exceeds 2023 Revenue Target By GH¢113.06 billion

The Ghana Revenue Authority (GRA) has collected a total tax revenue of GH¢113.06 billion for the 2023 fiscal year as against a revised target of GH₵109.19 billion.

This performance represents a nominal growth rate of 49.3% against an expected growth rate of 44.2% over 2022 fiscal year.

Initially, the Authority was tasked to collect a total tax revenue of GH₵106.00 billion for the 2023 fiscal year. This represents a 40.0% growth over the collection of GH₵75.71 billion for the 2022 fiscal year.

In an interview, the Commissioner-General of GRA, Rev. Dr. Ammishaddai Owusu-Amoah, said the target was revised in the 2023 Mid-Year Budget to GH₵109.19 billion, which was an upward adjustment of GH₵3.20 billion (i.e. 3.0%). This represents a growth of 44.2% over the collection of 2022.

“I am happy to announce that, we recorded a year-on-year growth of 49.3%, the highest ever recorded in the last 20 years and the highest tax to GDP ratio of 14.1% in the last six years,” he said.

Domestic tax revenue grew by 54.0% and contributed 73% of the total revenue raised in the year, whereas tax revenue from international trade (Customs) grew by 38.2% and contributed 27% to total tax revenue.

In 2023, tax revenue growth more than doubled within two years, a feat which occurred only in 2011 and 2012 when Ghana first discovered oil in commercial quantities.

The Authority has also recorded the highest ever Tax Buoyancy (the efficiency and responsiveness of tax revenue mobilization to growth in the Economy) of 1.5 recorded in 2021 and also 2023.

Rev. Dr. Owusu-Amoah attributed the outstanding performance to the intensified compliance activities to recover overdue liabilities, as well as provisional assessments for 2023 and high payment of Corporate Income Tax (CIT), especially from the banks. Compared to the year 2022 payment of GH₵2,557.47m, in the year 2023, the banks paid GH₵3,957.92m. These payments indicated a growth rate of 54.8% (i.e. GH₵1,400.45m).

Also, increase in revenue from 1% withholding tax at the ports, intensified field work in the collection of tax stamp from the micro businesses, especially artisans and Vehicle Income Tax (VIT) payments, which resumed full-scale during the year after its suspension as a result of the Covid-19 pandemic.

In addition, effective classification and valuation of goods, improvement in monitoring of leakages, such as under-valuation and misdescription of goods by the Customs Division all contributed to enhancement in revenue performance.

The performance of the major mining firms – Traditionally, the highest contributors to CIT are the mining companies. The total contribution of these companies grew by 39.6% in 2023 from GH₵4,420.05m payment in 2022 to GH₵6,135.80m in 2023. The relatively good price of gold, saw an increase of 15.8% over the price in 2022, especially in the last quarter of the year, which contributed to the performance of the mining companies.

Payment of Mineral Royalties – Most taxpayers recorded increase sales in 2023, coupled with the favourable price of gold, which appreciated 7% from US$1,942.67 in 2022 to US$2,078 in 2023 and the over 40% depreciation of the cedi made taxpayers pay more in 2023 as compared to 2022.

Domestic VAT registered a record year-on-year growth of 61.9% although it fell shy of its target by 9.9%. The impressive growth resulted from intensive compliance and invigilation exercises carried out during the year.

The passage of upfront VAT payment Act in May 2023 also enhanced the performance by roping in GH¢173.89million.

Import VAT performance also improved during the year. The target was exceeded by 3.5% and a growth of 53.3% was recorded.

E-Levy also registered year-on-year growth of 85.7%. The tax type saw an increase in transaction levels compared to the previous year. There was an increase in the level of transaction with a bump in revenue in December 2023 due to the increase in person to person transfers.

The Commissioner-General expressed appreciation to his dedicated and hardworking staff, as well as taxpayers and stakeholders, for contributing to the success story of making significant strides in growing tax revenue.

He also appealed to all eligible individuals and businesses that earn income to contribute their fair share towards the socio-economic development of Ghana.

The GRA has further assured that, they will be continuing their efforts to expand the tax with the various initiatives announced in the 2024 Budget Statement and also engage stakeholders while rolling out such initiatives for easy implementation.

Source: Anchorghana.com