IRS exceeds 2009 revenue target by 14.4%

The Internal Revenue Service (IRS) exceeded its projected revenue of GH¢1,554,542,500 for 2009 by 14.4 per cent.

It realized GH¢1,778,200,390 exceeding the target by about
GH¢223, 657,890, Major Dan Ablorh–Quarcoo (Rtd), Commissioner of IRS, told the Ghana News Agency in an interview on Thursday.

He said the recent introduction of the Rent Tax, drawing 10 per cent tax from rents collected by landlords would boost revenue mobilization this year.

“If the trend continues the revenue gap of 14 per cent would close up to manageable levels. Though the global credit crunch threatened low revenues, 2008 was reasonably a good year for IRS hence the increase,” he said.

Maj. Ablorh-Quarcoo said the projection for 2010 was GH¢2.235 billion and expressed the hope that with the automation of the IRS, the 2010 tax target would be realized.

He said IRS was in partnership with a private company to undertake the automation exercise which is expected to be completed within three years.

“The exercise will help IRS expand the tax net to reach more people,” he added.

Government, Maj. Ablorh-Quarcoo said, had provided enough logistics such cars and other equipment for the success of the programme.

“We expect tax payers to comply with tax laws and cooperate with tax authorities for good relationship between tax payers and tax administrators”.

He commended landlords who voluntarily paid their rent tax and urged others to emulate them.

Maj. Ablorh-Quarcoo said the rent tax operated in Tema, Teshie, Nungua and Legon in 2009 and would be extended to other areas in Accra metropolis this year targeting commercial property and all estates in future.

He appealed to private organisations to fulfil their tax obligations without which the tax burden would be on salary workers alone.

Source: GNA