PAC Orders District Assemblies to Remit Withholding Taxes to GRA Amid Audit Findings

The Public Accounts Committee (PAC) has issued a stern directive to various Municipal and District Assemblies, instructing them to comply with the Income Tax Act, 2015 (Act 896) by remitting withheld taxes to the Ghana Revenue Authority (GRA) promptly. This mandate, outlined in the law, requires withholding agents to transfer taxes withheld to the Commissioner-General of the GRA within 15 days after the close of each calendar month.

This directive follows alarming revelations in 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 report highlighted significant non-compliance among several Assemblies, including the Atwima Nwabiagya North District, Amansie West District, Bosome Freho District, Banda District, and Wenchi Municipal Assembly, among others.

The issue was brought to the forefront during the second day of PAC’s hearings in Sunyani, where the Committee scrutinized the financial management practices of these Assemblies. PAC expressed grave concern over the failure of these Assemblies to remit the taxes, noting that such negligence directly affects the timely payment of salaries and allowances, thereby disrupting financial stability within these institutions.

In response to these findings, PAC has urged the Assemblies to immediately cease these unlawful practices and to realign their operations with legal requirements. The Committee emphasized the need for Assemblies to set realistic financial targets and adhere strictly to their budgets to avoid fiscal mismanagement.

Additionally, PAC highlighted the challenges faced by some Assemblies in generating sufficient Internally Generated Funds (IGF) to support ongoing projects. This shortfall has led to delays or the complete abandonment of initiatives, now referred to as “legacy projects,” which have caused escalating costs and adversely impacted local communities. The Committee also expressed concern over completed projects that remain unused, urging Assemblies to take immediate action to bring these resources into service.

In a related issue, PAC appealed to the Free SHS Secretariat to release necessary funds to senior high schools (SHS) across the country. The Committee condemned the current funding shortfall, revealing that several headmasters and headmistresses have received only GH¢9,000 since February 2024 for recurrent expenditures, with no additional disbursements. PAC described this situation as unacceptable and called for urgent corrective measures to ensure the smooth operation of educational institutions.

The PAC’s directives and concerns underscore the critical need for improved financial governance within Ghana’s Assemblies to enhance service delivery and accountability to the public.