Sunyani (B/A), Sept. 29, GNA - Mr Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, has advised management and staff of the Internal Revenue Service (IRS) to continuously engage the public in tax education and information.

"If members of the public are regularly educated on the benefits of prompt payment of taxes, that national development leads to expansion of the economy, ensures the security of businesses, the availability of employment opportunities, personal growth and development, they will readily pay their taxes", he said. The Finance Minister gave the advice in a speech read for him by Mr Ignatius Baffour-Awuah, Brong Ahafo Regional Minister, at the re-launch of the Tax Stamp system in Sunyani.

Mr Baah-Wiredu said records showed that companies and employees in the government sector contributed the bulk of internally generated revenue, while revenue from the informal sector was "just a drop in the national coffers".

He stressed the urgent need to expand the tax base to the informal sector to ensure fairness and equity in the system. "The burden of tax must be shared by all, no matter how little one's contribution is", the Finance Minister added.

Mr Baah-Wiredu urged members of identifiable groups and associations to take advantage of the reduction in rates and support the Tax Stamp initiative by boldly displaying it in containers, kiosks and on tables for inspection on demand.

He cautioned officers of all the revenue agencies to build trust, which was a key component in ensuring voluntary tax compliance, among the public, adding "tax officers must do a better job of interacting, understanding and serving the public to win their trust and co-operation through their conduct and professional integrity".

Mr Sekyere Baah-Nuakoh, Sunyani District Director of the IRS, in an overview of the Tax Stamp system said the Region chalked a huge success in revenue collection in the Vehicle Income Tax (VIT) introduced in July 2003.

He said the Region collected nearly four billion cedis in 2005 in Vehicle Income Tax (VIT) as against three billion cedis bagged in 2004, adding, the VIT success made his organisation project more than four billion cedis, which it hoped to achieve.

Mr Baah-Nuakoh, however, expressed regret that the huge success of the VIT could not be said of the Tax Stamp system, which was introduced last year, adding, the Tax Stamp collected for the year 2005 was 762 million cedis.

He noted that the Region projected a low figure of 450 million cedis due to some factors identified by his organisation. The District Director said the target group complained of a high tax rate and expressed optimism that the reduced rate would make them to embrace it.

Mr Baah-Nuakoh observed that monitoring was not effective since the IRS relied mostly on National Service personnel, saying Small Taxpayer Bureaux had been set up in all the district offices. Mr George Lamptey, Regional Director of the IRS in a speech read for the Commissioner of IRS, Major Daniel S. Ablorh Quarcoo (rtd) announced that the tax rates had been reduced from 250,000 cedis by large groups to 150,000 cedis, while that of medium groups had been reduced from 150,000 cedis to 100,000 cedis.

He said tabletop operators and hawkers in urban areas would pay 50,000 cedis, while their counterparts in the rural areas who were not paying anything would pay 30,000 cedis quarterly. The Commissioner said all this was done in consultation with those in the informal sector.