In a bid to boost Ghana’s revenue collection, Anthony Kwasi Sarpong, the Commissioner-General of the Ghana Revenue Authority (GRA), has emphasized the need to expand the country’s tax base by leveraging technology and improving compliance. Speaking on The Point of View on Channel One TV on Monday, March 3, 2025, Sarpong highlighted the untapped potential in Ghana’s tax system and outlined strategies to bring more individuals and businesses into the tax net.
The Current State of Ghana’s Tax System
Ghana already has a robust framework of tax policies and regulations in place. However, Sarpong pointed out that many individuals and businesses remain outside the tax net, while others are not maximizing their contributions.
“I believe that we are at a point in terms of policy; there’s a lot of policies and tax regulation that are in our books. What we need first is to deepen that, and what we mean by deepening is to bring a lot more people who are outside the net into the tax net.”
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The Role of Technology in Tax Administration
Sarpong stressed that technology is the key to modernizing tax administration and ensuring compliance. By adopting advanced tools and systems, the GRA aims to stay ahead of taxpayers and close existing gaps.
“Those who are in it and which we haven’t reached full potential, bring them unto it. One sure way, as far as I’m concerned, together with my management, is to use technology. We’re at a point where if we embrace technology as tax administrators, we should be on par or ahead of the taxpayers.”
Proposed Tech-Driven Solutions
- Integrating Tax and Business Registration: Streamlining the process to ensure businesses are automatically registered for taxes when they incorporate.
- Monitoring Online Businesses: Using digital platforms like Instagram to identify and track businesses advertising their services but not paying taxes.
“When you go to Instagram, people are advertising their businesses, yet they don’t find themselves in the tax net. Using technology is one sure way of bringing everyone into the tax system.”
The Importance of Tax Education and Partnerships
Beyond technology, Sarpong highlighted the need for sustained tax education and collaborative partnerships to enhance compliance. Educating taxpayers about their obligations and the benefits of paying taxes can foster a culture of voluntary compliance.
“Sustained tax education and partnership are also needed.”
Why Expanding the Tax Base Matters
Expanding Ghana’s tax base is crucial for:
- Increasing Revenue: More taxpayers mean more funds for public services and infrastructure.
- Reducing Reliance on Borrowing: A stronger tax system can reduce the need for excessive government borrowing.
- Promoting Fairness: Ensuring everyone contributes their fair share creates a more equitable society.
Challenges and Opportunities
While the potential benefits are clear, expanding the tax base comes with challenges:
- Informal Sector: Many businesses operate informally, making it difficult to track and tax them.
- Resistance to Compliance: Some individuals and businesses may resist paying taxes due to lack of trust or understanding.
However, with the right strategies—such as leveraging technology and improving education—these challenges can be overcome.
Call to Action: Join the Movement for a Stronger Ghana
The GRA’s efforts to expand the tax base are a step toward building a more prosperous Ghana. Here’s how you can contribute:
- Stay Informed: Learn about your tax obligations and the importance of compliance.
- Support Tech-Driven Solutions: Advocate for the adoption of technology in tax administration.
- Spread Awareness: Share this article to educate others about the need for a stronger tax system.
Join the conversation on social media using #TaxForDevelopment and #GhanaRevenue. Together, we can create a fairer and more sustainable future for Ghana.