Support to internal resource mobilization
The support to internal resource mobilization in Ghana is a project to help the Government of Ghana to generate more revenues and thereby enable it to finance the implementation of its poverty reduction strategy.
Economic and financial policy
- Deutsche Gesellschaft für internationale technische Zusammenarbeit
|Background||In the last two decades Ghana's tax policy and tax administration framework has been fundamentally reformed. The tax to GDP ratio has almost doubled since the end of the 1980s, accompanied by a change in the tax structure, which shifted towards taxation of consumption and saw a relative increase towards a higher proportion of direct taxes and considerable decline, due to trade liberalization, in international trade taxes. In addition, Ghana started to extract oil which contributes increasingly to the Government's revenues. The project supports the changes of the revenue structure and the implementation of the reforms.|
|Objectives||The government is able to implement its national poverty reduction strategy with increased domestic revenues, underpinned by a modern and transparent tax system and transparent management of petroleum revenues.|
|Medium-term outcomes||Improved efficiency and effectiveness of tax administration and better quality of service delivery.Better access to information and services of taxpayers through advanced taxpayer segmentation.Taxpayers sensitized on modernization procedures.Strengthened support services (human resources, integrity, performance) leading to improved taxpayer services.Sustained capacity of the Tax Policy Unit to inform tax policy making and revenue estimates for the budget.Capacity of the Tax Policy Unit strengthened to develop high quality tax legislations and policies.Law making and oversight by parliament of extractive resources and revenues effectively strengthened.|
Expected results: Organizational structures, processes and legislative framework for revenue policy are modernized along the lines of an increasingly rules-based, transparent and effective tax system.New tax offices for small, medium and large taxpayers have been set up.Performance orientation of personnel increased.Audits are carried out in line with officially approved procedures.Taxpayers are sensitized on modernization process and latest developments in tax legislations.Capacity of parliamentarians to understand, debate and engage with oil, mining and gas issues is improved.Understanding by parliamentarians of their role in enhancing accountability and transparency with regard to the extractive sector is improved.Dialogue and information sharing between parliament and key stakeholders on oil, gas and mining issue is improved.Capacity of the media to engage parliamentarians on extractives is strengthened.
Results from previous phases: A first phase of support to the Tax Policy Unit (TPU) was carried out from April 2008 to March 2010. The TPU has evolved into the key unit within the Ministry of Finance regarding policy analysis and policy making. The support has been effective in bringing tax policy and tax administration issues together and, thereby, facilitating the reform process. On the output level, TPU staff are increasingly able to play a competent role in tax policy research and revenue forecasting activities, as evidenced for instance by the number of reviews carried out for different revenue sources. On the outcome level, this translates progressively into more effective policy making and stakeholder dialogue on tax policy issues, as indicated by substantial changes to the legal and fiscal framework (e.g. petroleum revenue management bill, revenue administration reform) and qualitative changes in the budget planning process.
|Directorate/federal office responsible||
|Budget||Current phase Swiss budget CHF 5'055'000 Swiss disbursement to date CHF 0 Budget inclusive project partner CHF 33'000'000|
Phase 2 01.01.2010 - 31.12.2015 (Completed)