Religious Tax; A Support To National Revenue

Taxes are the means of revenue to the government. The government uses the revenue from taxes to undertake public projects. What then are taxes? A compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions. It becomes however an offence punishable by law when one refuses to render his or her tax obligation. In view of this, we have left one element un-attended to and that is the inclusion of religious bodies to render their tax obligations.

Taxes are in various forms basically classified into both direct and indirect taxes which includes gift tax, income tax, NHIS levy,etc.

The maintenance of historic monuments, government aid, emergency relief, conduct elections, run several government institutions like department for agriculture, commerce, energy, urban development, treasury, judiciary, department of motor vehicles etc. are all financed from the taxes the ordinary Ghanaian like you and I pay. Undoubtedly, revenues from tax has not being enough as a result of the fact that, tax officials have failed to cover most eligible tax payers into its data base and the tax base not really a true reflection of what individuals should pay. Another relevant concern to increasing government revenue from tax has being the introduction of Religious Tax.

Why Religious Tax
Since the collection of tax or revenue from tax has being insufficient means to providing revenue for the government as a result of some individuals failing to pay their tax and considering the enormous proceeds accruing from religious bodies, payment of tax from these religious organizations would be another element contributing and increasing the tax revenue. In Ghana, individuals have the right to form any religious organization, the right to join any organization and so on. This has led to the increasing number of religious organizations in Ghana from the charismatic to the orthodox, the traditional associations and so many more. Just as the bible requires every Christian to pay tithes to help build the church, it wouldn’t be wrong if religious bodies just as the telecommunication bodies also pays taxes to the government to build the nation and boost our tax revenue. In Ghana, the question of who pays tax has being limited to an individual who is resident, ordinarily resident and domiciled in the State is liable to income tax in respect of his/her total income wherever arising. The same applies to corporate tax and the rest of the elements contributing to our tax revenue. In most of the religious bodies, its member’s pays dues, welfare, tithes, day born offering and special offertory. Most individuals as a result of unemployment has also diverted to missionary work as a means of making profit and demanding huge sums of money from individuals even before you see the organizational head for counselling.

Is it wrong for these religious bodies to pay tax? My answer is a bigger NO. Considering the large number of religious entities we have in the country and the profits they accrue on weekly basis, it would be relevant and very important for the chieftaincy and the religious bodies’ ministry to play a role in the collection of taxes to help boost our total tax revenue as a nation. In view of this, I strongly recommended that, every religious body that operates within this nation registers with the registrar department and given special identification pin to enhance tax collection. In this regard, the identification pin would be submitted to Ghana Revenue Authority (GRA) for compliance. To effect this, there should be a parliamentary legislation to ensure religious bodies from rank and file of this nation honor the payment of religious tax and failure to adhere to such directive attracts a special penalty.

To conclude, I strongly recommend a legislation is passed to conclude an element termed religious tax to contribute towards the total tax revenue earned annually. Considering the relevance of taxes to assisting the government with revenue to undertake public projects, we cannot dispute the fact that any further addition to our tax revenue is a bad idea. To increase the tax base, inclusion of a religious tax is a step in the right direction and I would be glad to see it implemented to effect most especially the one man churches.

Writer: Emmanuel De-Graft Quarshie
Degraftxclusive.blogspot.com

   Comments1