State Agencies Under Spotlight: CUTS Challenges DVLA Licensing Fees as GRA Modernises VAT Collection

Ghana's administrative landscape is witnessing a dual push for transparency and efficiency as state agencies face significant scrutiny over their revenue-generation practices. CUTS International, a prominent public policy advocate, has formally petitioned Parliament to investigate the Driver and Vehicle Licensing Authority (DVLA) over its implementation of "delinquency" charges. The organisation is demanding an immediate suspension of these fees, which are applied to motorists renewing or replacing expired licenses. According to CUTS, the DVLA has failed to provide a clear legal basis for these escalating charges, which reportedly range from GH¢204.25 to GH¢404.25 depending on the duration of the license expiry. The advocacy group argues that such penalties lack transparency and may constitute "double punishment" for drivers who are already subject to police prosecution for driving with expired documents.

In addition to questioning the legality of the delinquency fees, CUTS International highlighted concerns regarding the high costs associated with updating personal information within the DVLA’s electronic records. The organization maintains that while the law penalises the act of driving with an expired license, it does not explicitly authorise the licensing body to levy administrative fines for the mere lapse of the document itself. By calling for a public inquiry, CUTS aims to ensure that the DVLA operates strictly within a legal framework that prioritises public service and compliance over punitive revenue collection. They urge Parliament to verify if these charges received the necessary legislative approval before being passed onto the Ghanaian public.

Simultaneously, the Ghana Revenue Authority (GRA) is moving forward with a major technological overhaul of the nation's tax system through the implementation of Fiscal Electronic Devices (EFDs). Commissioner-General Anthony Kwasi Sarpong expressed optimism that these new physical and electronic devices will serve as a "game changer" for Value Added Tax (VAT) collection. Recently sanctioned by Parliament under the Fiscal Electronic Device Act, these tools are designed to record transactions automatically at points of sale and report them directly to the GRA. This initiative targets a substantial 40% compliance gap in VAT remittances, with the goal of ensuring that all businesses that collect the tax actually remit it to the state.

The GRA's modernization efforts have gained high-level traditional support, with the Asantehene, Otumfuo Osei Tutu II, encouraging the authority to expand the tax net into the informal sector. During a recent engagement, the GRA Board revealed that the authority successfully mobilised over 80 million cedis in the first half of the year, with a target of exceeding 170 million cedis by the year's end. The Asantehene emphasized that while revenue mobilization is critical for national development, it must be balanced with taxpayer education and measures to prevent leakages. The rollout of the EFDs is expected to begin shortly in supermarkets and mid-size retail outlets across the country.

These developments represent a critical juncture for governance in Ghana, as the state seeks to balance aggressive revenue mobilization with the legal rights of citizens. While the GRA’s electronic reforms promise a more robust and fair tax environment, the pushback against the DVLA serves as a reminder that administrative fees must remain rooted in transparent legislation. As Parliament considers the petition from CUTS International and monitors the GRA’s rollout, the outcome will likely define the relationship between state regulatory bodies and the public for the remainder of the current administration’s term.