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29.07.2005 Business & Finance

Revenue agencies urged to widen tax net


Accra, July 29, GNA - Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, on Friday stressed the need for the country to improve upon its revenue generation by enhancing the service delivery of the revenue agencies and widening of the tax net. He said government was committed to developing an effective and efficient tax system that had the ability to raise sufficient revenue for national development.

A statement issued by the Public Relations Unit of the Ministry of Finance and Economic Planning said the Ministry of Finance had noted with concern a publication in sections of the media entitled, "Government must reduce Value Added Tax (VAT)," attributed to Mr Baah-Wiredu.

The statement said the Minister enumerated a number of problems facing the VAT secretariat in particular including, registration and collection of tax from operators within the informal sector and did not categorically say that government must reduce the VAT rate. It said Mr Baah-Wiredu called for widening of the tax net to include more people in the informal sector, adding that perhaps if this was done it was possible to reduce the level of taxation in the country.