Tax college for Domaa Ahenkro

Story: George Ernest Asare, Kumasi
07/03/08

The Ministry of Finance and Economic Planning, in collaboration with the Revenue Agencies Governing Board, is to establish a Tax College at Domaa Ahenkro in the Brong Ahafo Region to train staff of the revenue agencies.
The Minister of Finance and Economic Planning, Mr Kwadwo Baah-Wiredu, who announced this in a speech read on his behalf in Kumasi at the weekend during the 2008 Management Seminar on the IRS, did not disclose when the college would be established, but urged the revenue agencies to take full advantage of the college as soon as it became operational.
This, he said, would not only help them to develop and sharpen their skills in revenue mobilisation, but would also make it possible for them to provide efficient service to their clients.
The revenue agencies are made up of the Internal Revenue Service (IRS), Customs Excise and Preventive Service (CEPS ) and the Value Added Tax (VAT) Service.
Mr Baah-Wiredu pointed out that the effectiveness of the IRS as tax administrators “would not be measured by how much you mobilise or your ability to meet set targets, but also by the quality of service you deliver to taxpayers”.
The seminar, which was on the theme: “Effective tax administration for efficient client service delivery”, was meant to take stock of the challenges that faced the IRS last year and strategise to enable them to meet their target for this year.
Mr Baah-Wiredu noted that it was only when the IRS improved customer consciousness and identify their clients’ need and also planned to meet such needs in a timely and professional manner, that their dwindling image among the public would be improved.
He expressed concern about the unethical practices of some officials of the IRS and said such negative attitudes undermined efficient revenue mobilisation.
He, therefore, urged them “to show integrity in their dealings and avoid all unethical practices which will tarnish the image of the service”.
The minister pointed out that his ministry “will not hesitate to invoke the necessary disciplinary measures against officers who abuse their offices for personal gains”.
He commended the IRS for achieving its revenue target for 2007, but noted that there was still room for improvement.
Mr Baah-Wiredu, therefore, urged them to expand their revenue base, especially at the informal sector, where a number of people did not honour their tax obligations.
He said it was equally important for the management of the IRS “to closely supervise and monitor the implementation of the Vehicle Income Tax Sticker, as well as the Tax Stamp System”.
Mr Baah-Wiredu said weak monitoring of tax collection could negatively affect the anticipated revenue from rent, vehicle tax sticker, tax stamp system and the small-scale self-employed sectors.
He said it was therefore important for the management to strengthen its supervision and monitoring systems to ensure that as many people as possible were brought into the tax net.
He gave assurance that the government would provide the requisite resources to fully equip the IRS to enable them to perform creditably in revenue mobilisation.
The minister said the computerisation and automation programmes of the IRS, for example, which would enable the service to operate more efficiently and reduce the opportunities for corruption, would commence this year, and therefore and urged the management to provide the necessary leadership and commitment for the project.
In his address, the Commissioner of the IRS, Major Daniel Ablorh Quarcoo (retd), said notwithstanding the numerous challenges they faced in their revenue collection in 2007, they collected GH¢910,235,784.12 representing a two per cent increase of the ministry’s target of GH¢907,054, 409.59.
The revenue achieved, however, fell short of the management’s target of GH¢930 million.
He said the management was putting measures in place to bring a lot of positive changes into the IRS to enable them to meet the target of GH¢1.22 billion set for this year.
He gave assurance that with “hard work, review of work habits, attitudinal change and positive effort to widen our tax net to capture all those prospective taxpayers outside the net we can achieve this target”.