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20.10.2005 Business & Finance

VAT Service bags 4.55 trillion cedis in revenue collection

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Kumasi, Oct 20, GNA - Revenue collection on the Value Added Tax (VAT) Service has increased from 793.2 billion cedis at the end of 1999 to about 4.55 trillion cedis in 2004.

VAT, which was incepted in 1988, has also seen its contribution to the gross domestic product (GDP) increased from 3.85 per cent to about 5.83 per cent within the same period whiles it has also contributed an average of 28.6 per cent total tax revenue. Mr Samuel Kofi Otabil, Ashanti Regional Head of the Service, who made this known said, its record makes VAT the third major source of tax revenue in Ghana as it has also played a key role in the general development of the country.

Mr Otabil was addressing a day's workshop for newly registered VAT traders in the Kumasi metropolis on Wednesday. The workshop formed part of the measures by the Service to sensitise the participants on the rights and responsibilities of a VAT registered trader, role of VAT in the national economy and registered traders compliance order.

Mr Otabil indicated that, to ensure increased revenue collection to enable the Service play a meaningful role in the Ghanaian economy, the Service had stepped up its education of the public especially traders to know their role, responsibilities, rights and sanctions under VAT.

He said as of now over 4,000 VAT registered traders could be identified in the Ashanti region, adding that poor record keeping among traders and poor tax payment culture were hindering smooth revenue collection.

Mr Otabil cautioned that the Service would deal drastically with traders who give misleading information and forged records about their transactions and therefore called on them to desist unhealthy practices.