Parliament of Ghana has approved a multi-year expenditure commitment between the Ghana Revenue Authority (GRA), represented by the Ministry of Finance, and a service provider to support the implementation of the Fiscal Electronic Device (FED) Policy aimed at enhancing domestic revenue mobilisation.
The initiative will facilitate the procurement and deployment of 40,000 electronic fiscal devices for businesses to strengthen VAT administration and improve tax collection.
Speaking during the debate on the Finance Committee’s report, the Committee Chairman and MP for Bolgatanga Central, Isaac Adongo, said the policy is designed to modernise VAT administration, improve tax compliance, and boost domestic revenue generation.
“The committee carefully examined the request for approval to engage a service provider to assist with the implementation of the Fiscal Electronic Device for the Ghana Revenue Authority. The committee is satisfied that the proposal represents a significant reform aimed at modernizing VAT administration, improving tax compliance, reducing revenue leakages, and strengthening domestic revenue mobilization through the deployment of secure digital technology,” he said.
However, the Minority Caucus opposed the agreement, arguing that the government failed to disclose the duration of the contract and the total cost of the arrangement.
“This is a financial commitment, and they expect to commit to the government for an indeterminate number of years, because in the proposal, they have not even specified how many multi-year commitments they want to give us. That’s the first reason.
The proposal and the memorandum did not specify the financial cost of this transaction to the people of Ghana. Mr. Speaker, you cannot commit the people of Ghana at large,” he added.
www.modernghana.com
