The Ghana Revenue Authority (GRA) is targeting a reduction in the country’s Value Added Tax (VAT) gap from the current 60% to about 30% by the end of 2028.
Commissioner for the Domestic Tax Revenue Division of the GRA, Dr. Martin Kolbil Yamborigya, said the target forms part of the Authority’s VAT Strategic Plan, which seeks to improve compliance and increase VAT collections.
“According to our VAT strategic plan, we are hoping that between now and the end of 2028 we should be able to close this gap from the current 60% to about 30%,” he said.
The Commissioner for the Domestic Tax Revenue Division of the GRA was speaking to the media on the sidelines of the launch of the VAT Compliance Campaign after visiting some shops at Accra mall to check their VAT compliance.
Dr. Yamborigya explained that achieving the target would require the GRA to collect significantly more VAT from the existing tax base while working towards broader compliance.
“That means that at least we should be able to collect 30% more in addition to what we are currently collecting,” he added.
He said the long-term objective is to ensure that businesses and individuals meet their VAT obligations consistently, rather than relying solely on enforcement measures.
“In the long run we expect every Ghanaian to comply so that the tax will be collected,” Dr. Yamborigya stated.
GRA adopts education-first approach
The Commissioner stressed that the ongoing VAT Compliance Campaign is not intended to harass businesses or put them at a disadvantage.
“This campaign is not meant to harass businesses and we don’t also intend to disadvantage any business,” he said.
His comments followed compliance visits by GRA officials to some businesses at the Accra Mall as part of efforts to assess adherence to VAT requirements.
According to Dr. Yamborigya, the exercise identified instances where businesses were not consistently issuing VAT invoices to customers.
“We realized that they were not religiously issuing VAT invoices and we only encourage them to make sure they do the right thing,” he said.
He explained that the GRA opted to educate and engage the affected businesses rather than immediately resorting to punitive measures.
“If we were not to show human face, we probably would have called for their arrest immediately,” Dr. Yamborigya said.
He added that the Authority will continue to combine education and engagement with enforcement, particularly where non-compliance is found to be deliberate.
“We are going to be more engaging, we are going to be more educative. But where we find out that the non-compliance is deliberate, that’s what we apply,” he stated.
Dr. Yamborigya said the approach is intended to ensure that taxpayers understand their obligations and are given the opportunity to comply, while deliberate breaches are dealt with appropriately.
“So we continue to show human face by ensuring that people know and understand their tax obligations and comply,” he added.