Domestic Revenue Mobilization Ghana, Phase III
The overall objective is to contribute to domestic revenue mobilization to enable Ghana to finance its development needs and reduce poverty. This will be achieved through support to national tax policy and administration reforms, building capacity for subnational revenue mobilization and strengthening revenue management of the extractive sector.
Economic and financial policy
- Deutsche Gesellschaft für internationale technische Zusammenarbeit
|Background||To increase domestic revenues the Government of Ghana’s implements an ambitious tax reform agenda. Main pillars are the modernization of the tax authority, the segmentation of taxpayers, the widening of the tax base and the introduction of self-assessments. With many reforms having made good progress, it is expected that the focus of the programme shifts towards subnational revenue mobilization where few donors are active but the need for support and the potential benefits are high. This programme is closely linked to the policy dialogue and the performance assessments of the general and decentralized budget support operations.|
|Objectives||The overall objective of the project is to contribute to domestic revenue mobilization to enable Ghana to finance its development needs and reduce poverty.|
|Medium-term outcomes||Effectiveness and efficiency of national public revenue management enhanced, taxpayer services improved and tax base broadened. Increased transparency and efficiency in the management of revenues from oil production and mining.Local governments are more efficient and effective in the planning, collection and administration of their revenues, in particular property taxes.|
Expected results: Tax laws review completed.Self-assessment system fully implemented.Development and implementation of the self-employed income tax revenue enhancement project to broaden tax base.Implementation of ECOWAS common external tariff.Monitoring of excise tax stamps.Development of electronic point of sale device legislation. Revenue forecasting strengthened.Training capacity in GRA and TPU strengthened.HR strategy, policies and procedures, in particular the performance management system implemented.Organizational efficiency and effectiveness improved.Change management strategy implemented.Capacity of the extractive unit of the GRA, the extractive unit of the Ghana Audit Service, the Public Interest and Accounts Committee (PIAC) and the Real Sector Division of the Ministry of Finance in areas such as transfer pricing, contract transparency, expenditure tracking, oil and gas accounting and negotiation of contracts strengthened.Support of GRA in selected local governments piloted.
Results from previous phases: With the tax-to-GDP increasing steadily from 12.9% in 2008 to 16.9% in 2015, the main objective of mobilizing more domestic revenues has been achieved. Other important high-level indicators such as information on taxpayers’ obligations, the width of the tax base or satisfaction with taxpayer services have also improved. Thanks to SECO support, the TPU has evolved into the key unit within the Ministry of Finance regarding policy analysis and policy making. The project invested heavily to build capacity in key management and technical functions and support change management.
|Directorate/federal office responsible||
|Budget||Current phase Swiss budget CHF 6'825'000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 30'250'000|
|Project phases||Phase 4 01.05.2016 - 30.04.2022 (Current phase) Phase 2 01.01.2010 - 31.12.2015 (Completed)|