GRA Gears Up for Fiscal Electronic Device Act Implementation to Boost VAT Revenue
The Ghana Revenue Authority (GRA) is poised to intensify its efforts in implementing the Fiscal Electronic Device Act, 2018 (Act 966). This move, announced by Commissioner-General Anthony Kwasi Sarpong, is a key component of the GRA’s broader plan to reform the Value Added Tax (VAT) regime and ultimately boost government revenue. The Act, which has been in effect since May 4, 2018, requires specified taxable businesses to utilize approved Fiscal Electronic Devices (FEDs) at the point of sale, laying the groundwork for increased transparency and accountability in commercial transactions.
Expanding VAT Coverage Through Technology
The core objective of implementing the FED Act is to significantly improve VAT revenue collection. The GRA’s strategy focuses on extending VAT coverage, particularly within the retail and service sectors, which are recognized as areas with considerable untapped potential. Commissioner-General Sarpong highlighted the significance of this expansion, stating that a successful rollout could lead to opportunities to review the VAT rate in the future. The use of FEDs is expected to ensure accurate record-keeping of transactions, thereby improving tax compliance and reducing revenue leakages. This digital approach aligns with the growing African tech landscape, where electronic solutions are increasingly utilized to streamline processes and enhance governance. The GRA is actively working to accelerate this transition.
In conclusion, the GRA’s focus on the Fiscal Electronic Device Act represents a pivotal step towards modernizing Ghana’s tax administration. By leveraging technology and expanding VAT coverage, the GRA aims to improve revenue mobilization, bolster economic stability, and foster a more compliant business environment. This initiative demonstrates a proactive approach to fiscal management, critical for sustainable development in Ghana.
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Related Keywords: GRA Fiscal Electronic Device Act, Ghana Revenue Authority, FED Act implementation, tax compliance, electronic tax devices, Commissioner GRA, fiscal devices Ghana, tax revenue Ghana, Ghana tax law, revenue collection
