Monday, August 18, 2008

SEDASSI APPEALS FOR IRS OFFICE (NSEMPA, PAGE 20)

By George Ernest Asare, Kumasi

EXECUTIVE members of the Sekyere East District Association of Small Scale Industries (SEDASSI) have urged the Internal Revenue Office (IRS) to establish a revenue office, at Effiduase as a matter of urgency, to enhance the payment of income tax by the business community in the area.
According to the SEDASSI, the absence of a revenue point at the district was not only undermining revenue mobilisation to accelerate sustainable national development, but was also inconveniencing those who want to honour their taxes promptly.
The executive made the request when they paid a familiarisation visit to the Ashanti Regional Director of the IRS in Kumasi.
The visit afforded opportunity for the members to outline the challenges affecting them as taxpayers in the district and the measures that should be taken to address those challenges.
It also offered opportunity for the members to outline a programme of collaboration that would enable their members assist the IRS identify all potential taxpayers within the district and its environs to enhance revenue mobilisation.
Concerns
Outlining their concerns, the Vice Chairman of SEDASSI, Mr Moses Agyei said a research conducted by the association revealed that the Sekyere East District had already been assessed and recommended for the creation of an IRS office since 2000.
“WE believe that action on the proposal has been delayed for far too long, and we therefore call on the relevant bodies and authorities, to expedite action, to ensure that the district is provided with an office, as soon as possible, to enhance tax payment in the district,” he stressed.
He pointed out that siting an IRS office at Effiduase was important “because at the moment, taxpayers have to travel to Mampong to pay their taxes.”
This, he said, undermined efficient and effective revenue mobilisation by the IRS, “ because taxpayers, are always reluctant, to travel to Mampong just to pay tax due to the risk involved and the time wastage in travelling very far, to honour your tax obligation,”
“While taxes of workers in the formal sector are deducted at source those in the informal sector in this district are required to pay our taxes by travelling to the offices of the IRS, in the Sekyere West District, which add additional cost to our businesses in terms of transportation cost, loss of time and travelling risk,” he stressed.
Taxes
Ms Lillian Kuutiero of the Participatory Development Associate Limited, who was a member of the team, noted that tax collectors, only visited their district, to collect taxes on quarterly basis, “ but they are unable to reach out to all tax payers in the district resulting in arrears of unpaid taxes,”
“More people would be reached by tax collecting officials in all parts of the district when the IRS opens an office at Effiduase and this would ensure increased revenue and equity in the payment of taxes,” she noted.
Ms Kuutiero also noted that “our members and other tax payers can also pay their taxes, more promptly and conveniently, thereby reducing the defaulter rate, to minimise confrontations and harassments associated with tax collection.”
She noted further that with an office at Effiduase officials of the IRS would be able to take advantage of their presence, to initiate educational programmes to sensitise the public, to their rights and responsibilities regarding tax payments.
Lobbied
She said already SEDASSI had lobbied the Effiduase District Assembly to provide an office accommodation for the IRS to enhance revenue mobilisation, and assured all that their members would be eager to collaborate with the IRS to identify all potential taxpayers for them to honour their taxes promptly.
Responding, the Regional Director of the IRS, Mr John Defortse, commended the members for their sense of initiative and assured them, he would pay a familiarisation visit to the area to inspect the office allocated to the IRS by the District Assembly.
Mr Defortse said inadequate facilities and logistics had always undermined revenue mobilisation but said measures been taken to address the lapses.
“There is a procedure to follow before approval is made for the collection point to be opened, but I assure you that by the second quarter of next year, we will open an office at Effiduase,” he assured.

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