VAT service educates students

Published in the Daily Graphic on 30/06/2010, pg 29

Story: Matilda Attram
Officials of the Adabraka Value Added Tax (VAT) office have organised a sensitisation programme for staff and students of Accra Girls’ High School to raise the awareness of the need for the payment of Value Added Tax and National Health Insurance Levy (VAT/NHIL).
The programme also aimed at interacting with students of the school to enable them understand the concept of VAT/NHIL and their processes.
It was on the theme ‘Role VAT/NHIL in national development’.
In a presentation, the Senior Revenue Officer of the Adabraka VAT Office, Mr Salifu Wumbei, indicated that the payment of taxes was a legislative instrument applied by the government of a nation for the benefit of all.
He said the correct payment of taxes by citizens promoted the development of every nation and the well being of its people.
“Taxes are compulsory statutory payments made to government with no obvious and immediate benefit to the payer but for the benefit of all,” he stated.
According to him, parts of the revenue invested in the development of Ghana depended on the contributions the public made to the VAT Services.
He explained VAT as a general tax on consumption expenditure, imposed on prices of goods and services.
He, therefore, stated that the VAT Services were responsible for the collection of VAT, National Health Insurance Levy, the Communications Service Tax and the Domestic Excise Tax in the country.
“The VAT was established in 1998 under section 36 of the Value Added Tax Act, 1998, (Act 546) to take up certain responsibilities on the collection of taxes,” he added.
He also mentioned direct and indirect taxes as the types of taxes collected in the country.
“Direct taxes are imposed on a person’s earnings, income or wealth paid by the individual to whom the income or wealth accrues, example gift tax and income tax while, indirect taxes are imposed on goods and services paid by consumers or receivers of such goods and services, for example VAT and customs duty,” he added.
Mr Wumbei emphasised that some services were exempted from the payment of taxes and those included agricultural , educational and medical services.
The Client Services Supervisor of the Adabraka VAT Office, Mr Nathan Danquah, in a statement stressed that taxation was a major means that permitted everyone to contribute towards revenue mobilisation for development.
The Public Relations Officer for the Adabraka VAT Office, Mr Welbeck Asare Asamoah, advised all to insist on their VAT invoice anytime they purchased goods and services from registered businesses, and also report to any VAT office when they suspected that certain businesses had not registered with the VAT.
“Please report to us if you suspect businesses who charge taxes and do not make returns to us, so together we can all build our nation to the benefit of all.”