Ghana signs €2.1m tax reforms agreement with Germany, Switzerland

Government and two overseas development agencies, on Tuesday signed a Memorandum of Understanding (MoU) for a 2.1 million- Euro grant facility, for the Tax Policy Unit (TPU) and the Ghana Revenue Authority (GRA).

German Agency for Technical Co-operation (GTZ) and Swiss State Secretariat of Economic Affairs (SECO), initialled the MoU to support GRA to complement government efforts in integrating the Internal Revenue Service, Value Added Tax Service and Customs, Excise and Preventive Service under one Authority, to improve revenue collection performance and enhance service delivery.

The funds will also assist in the institutionalisation of the TPU within the Finance Ministry and build the capacity of officers to ensure informed tax policy decision-making.

Deputy Finance Minister, Fiifi Kwetey signed for Ghana while Dr Fred Brandl, Country Director of GTZ and Mr Jean-Luc Bernasconi, Head of Operations (SECO) initialled on behalf of their organisations.

Mr Kwetey said despite the prospect of oil revenue coming on stream, government would not slack in efforts to shore up domestic revenue mobilisation.

He said it was the long-term hope of government to depend more on internally generated revenue, noting that the support would enhance the capacity of the GRA in prosecuting the agenda.

Mr Bernasconi said it was important government for to  strengthen domestic revenue; pursue accountable, transparent and sustainable tax policies, which would contribute to improvements in fiscal performance.

The MoU marks the beginning of the second phase of the programme. The first phase of the joint support helped the TPU to build the capacity of staff and also provided office equipment and specialised software for tax analysis and forecasts.

Source: GNA