The Public Accounts Committee (PAC) has directed various Municipal and District Assemblies to comply with the provisions of the Income Tax Act, 2015 (Act 896).
This law requires withholding agents to remit withheld taxes to the Commissioner-General of the Ghana Revenue Authority (GRA) within 15 days after the end of each calendar month.
Withholding tax is a mandatory deduction made at the source by withholding agents when making payments to other parties, which is then forwarded to the GRA.
However, the Auditor-General’s report highlighted that several Assemblies, including the Atwima Nwabiagya North District, Amansie West District, Bosome Freho District, Banda District, and Wenchi Municipal Assembly, have failed to comply with these legal requirements.
This issue was brought to light during the second day of PAC’s hearings in Sunyani, where the committee reviewed the Auditor-General’s Report on the Management and Utilisation of the District Assemblies Common Fund and other Statutory Funds for the year ending December 31, 2023.
The committee expressed concerns that failing to remit taxes on time could affect the payment of salaries and allowances.
PAC urged the assemblies to avoid illegal practices and to set realistic targets while adhering to their budgets.
The committee added that some Assemblies’ Internally Generated Funds (IGF) are insufficient to support ongoing projects, leading to delays or abandonment.
These incomplete projects, referred to as “legacy projects,” result in increased costs and negatively impact local communities.
The committee also expressed concern about completed projects that remain unused by the assemblies.
Additionally, PAC appealed to the Free SHS Secretariat to release funds to Senior High Schools (SHS) to facilitate their operations.
Several school heads shared their frustrations during the meeting, revealing that since February 2024, they have only received GH¢9,000 for recurrent expenditure, with no additional funds provided since.