VAT Service organises seminar on Financial Administration Law
Takoradi, June 28, GNA - Madam Sophia Horner-Sam, the Deputy Western Regional Minister, on Tuesday told ministries, departments and agencies (MDA) that the Financial Administration Act 2003 (Act 654) makes it mandatory for them to procure goods and services only from Valued Added Tax (VAT) registered traders. She was speaking at a one-day seminar on the Financial Administration Act for accountants, purchasing officers and auditors of MDAs organised by the VAT service in Takoradi.
"By so doing, we shall be enhancing the trust in tax administration to enhance revenue mobilisation". Madam Horner-Sam cautioned accountants and purchasing officers who have turned themselves into suppliers that the law would deal with them if the right procedures outlined in the procurements acts were not followed. She said it is envisaged that when the MDAs make procurement with registered VAT traders, large government expenditure would be re-cycled into the VAT system.
Madam Horner-Sam said increased VAT revenue in addition to revenues from Custom, Excise and Preventive Service (CEPS) and the Internal Revenue Service (IRS) would make the country self-sufficient in revenue.
Mr. Joseph Odartey-Blankson, Commissioner of VAT Service, said the seminar was the third in a series the Service was organising for accountants, auditors and purchasing clerks of MDAs. ''It is legally obligatory for accountants and purchasing officers of MDAs to ensure payment of VAT and the National Health Insurance Levy (NHIL) on taxable goods supplied or taxable services rendered to their organisations.'' He said the Financial Administration Law had given the VAT Service the legal backing to enforce this obligation and when necessary prosecute offenders or violators of the law.
"MDAs bear the responsibility of purchasing from VAT registered persons except as deemed otherwise either by law or the Minister's directive." Mr Odartey-Blankson said the Service had embarked on a vigorous nation-wide mass registration exercise to capture all affected businesses in the tax net.