The Ghana Revenue Authority (GRA) is planning on making GHC 2.7 Billion from taxes as from betting and gaming companies and GH¢1 billion from the likes of Facebook, Google, Netflix, Twitter, Instagram, WhatsApp and Tiktok, which are largely stationed outside the country but profit from its citizens and registered institutions.
This is part of efforts to broaden the tax net to cover all institutions that profit from the economy using the numerous online and other electronic platforms.
The amount expected from the grey economies is part of the GH¢80 billion tax revenue target that the government set for the GRA in 2022.
At the moment, GRA and the state virtually gets nothing from the sprawling businesses, in spite of the handsome returns to the operators.
The Commissioner of the Domestic Tax Revenue Division (DTRD) of the GRA, Mr Edward Appenteng Gyamerah, said the COVID-19 pandemic had exposed the authority and the government to the huge revenue potential in the ecommerce, betting and gaming space and the GRA was now rolling out a comprehensive policy to enable it to have a fair share of taxes.
“GRA had concluded the relevant consultations and sensitisation with the players on the new regime, leading to some companies already starting to register to be able to comply.”Mr Edward Appenteng Gyamerah.
Mr Gyamerah further disclosed that a system that was developed to monitor the operations of the players was currently under test-trial after which it would be deployed. He was optimistic that it would be deployed by the second quarter of the year to ascertain the amount that the companies make to pave the way for the necessary taxes to be levied.
Ghana Introduces Six Tax Reliefs
This comes just a few days after the government of Ghana announced it has begun the implementation of six tax reliefs as part of government’s efforts to cushion Ghanaians/taxpayers against the Covid -19 pandemic and its dire effects on the economy.
The new reliefs include; the exemption of people whose annual incomes are up to GH¢4,500 or GH¢375 a month from paying taxes, as well as the suspension of the payment of Vehicle Income Tax on selected vehicles, including intercity commercial vehicles and intercity/long-distance buses.
The GRA will also limit the application of the flat rate Value Added Tax scheme to businesses whose annual income is up to GH¢500,000.
Government will also waive the interest and penalty on tax arrears for all categories of taxpayers. GRA will further reduce withholding tax on gold exports by small-scale miners by 50%, and the exemption of local textile manufacturers from paying VAT.
The GRA is of the belief that by granting these reliefs, the government would encourage individuals and firms to fulfill their tax obligations.
Read also; Nigeria & Ghana Set to Unveil Central Bank Digital Currencies.
