GRA revenue collection hit Gh₵68.04bn in H1’24

The Ghana Revenue Authority has reported a significant increase in revenue collection in the first half of 2024, exceeding its mid-year target by 138.69 million Ghana cedis. The total revenue collected amounted to 68.04 billion Ghana cedis, showcasing a strong performance by the tax collection agency. On the other hand, data from the Auditor General revealed that the Ghana Cocoa Board recorded a profit of 2.3 billion Ghana cedis in the 2022-23 fiscal year, marking a turnaround in the organization's financial performance. To delve deeper into these developments, John Gatsi, Dean at the University of Cape Coast School of Business, offered insights on the factors influencing these outcomes during an interview with CNBC Africa. Addressing the profitability of the Cocoa Board, Gatsi highlighted that the restructuring of the organization's debt played a crucial role in its improved financial position. By renegotiating loans and deferring repayments, the Cocoa Board was able to report a profit after six years of financial challenges. However, Gatsi cautioned that the profit was primarily a book value estimation and not reflective of actual cash flow available to the Cocoa Board. He emphasized the importance of utilizing this breathing space to strategize and enhance operational efficiency to return to previous production levels. Shifting focus to the Ghana Revenue Authority's revenue surge, Gatsi acknowledged the positive implications for the economy but stressed the need for sustained revenue mobilization efforts. Despite the revenue boost, challenges such as high deficits, debt repayments, and outstanding projects loom large, requiring a comprehensive fiscal approach to address them effectively. Gatsi emphasized the necessity of aligning revenue generation with economic growth and job creation, urging policymakers to strike a balance between taxation and business incentives. Gatsi also discussed the impact of government policies on small and medium-sized enterprises (SMEs), noting the importance of creating an enabling environment that supports SME growth. While acknowledging initiatives to assist SMEs, Gatsi underscored the need for a holistic strategy that caters to diverse sectors, including agriculture and agri-processing. He emphasized the role of SMEs in driving economic growth and job creation, calling for greater engagement and support to revitalize struggling businesses. In conclusion, Gatsi addressed the downward trend of inflation in Ghana, highlighting challenges in translating this decline into tangible benefits for businesses and consumers. He emphasized the need for stability in exchange rates to complement efforts to reduce inflation effectively. Gatsi's insights shed light on the nuanced dynamics shaping Ghana's economic landscape and underscored the importance of strategic policymaking to steer the country towards sustainable growth and development.