New physical and electronic devices for VAT implementation will be a game changer – GRA boss

The Ghana Revenue Authority (GRA) anticipates that the implementation of new fiscal electronic devices, as part of the Value Added Tax (VAT) reforms, will revolutionize revenue collection. These devices, mandated by recent parliamentary approval, will enable businesses to record every transaction, automatically calculate VAT, and transmit the information directly to the GRA in real-time.

This approach aims to address the current compliance shortfall of around 40% in VAT performance. The GRA has already made a commendable start, collecting over 80 million cedis in the first half of the year, with a projected end-of-year target of 170 million cedis.

Upon their recent ceremonial visit to the Asantehene at the Manhyia Palace, the GRA Board expressed their mandate and achievements to Otumfuo Osei Tutu II, who urged the tax authority to broaden its reach into the informal sector and minimize revenue leakages. The new VAT system, scheduled to commence in mid-size shops and supermarkets over the coming months, is poised to significantly boost revenue mobilization.

Commissioner-General Anthony Kwasi Sarpong is confident that the reform will yield substantial gains, given that currently, only four out of ten businesses pay VAT, with many others either not charging or failing to remit the necessary tax. George Kweku Ricketts-Hagan, the Board Chair of the GRA, highlighted the potential benefits of advanced systems like Publican AI, despite initial skepticism from the business community.