Government’s desire and ability to mobilise and maximise domestic revenue is an integral part of President Addo Dankwa Akufo-Addo’s vision for a ‘Ghana Beyond Aid’, Vice President Dr Mahamudu Bawumia has underscored.
Thus, government is putting in place the necessary blocks, such as the issuance of a national ID Card, a National Digital Property Addressing System and the use of a Tax Identification Number to access key services, to broaden the tax base.
Additionally, it would reduce the tax burden on the estimated 1.2 million taxpayers, supporting a population of about 27 million.
Speaking at an ongoing conference in Accra, on ‘Moving Ghana Beyond Aid-Revenue Mobilization’ on Wednesday April 4, 2018, Dr Bawumia reiterated the government’s commitment to developing Ghana, using domestic revenues and ingenuity.
The conference, organised by the Africa Centre For Economic Transformation, in collaboration with Ministry of Finance and the International Monetary Fund, is being attended by countries, that have signed on to the G20-Compact With Africa (CWA).
Benin, Cote d’Ivoire, Egypt, Ethiopia, Guinea, Morocco, Rwanda, Senegal, Togo and Tunisia are among countries that have signed on to the CWA.
Outlining a number of measures the government is implementing to strengthen the economy and boost domestic revenue growth, Dr Bawumia said President Akufo-Addo’s vision of moving Ghana Beyond Aid was not mere rhetoric, but a reflection of the reality, as aid and donor fatigue grows.
“Judging from our history and our vision for the future, there is no doubt that we need to rethink of how we develop as a country. It has become obvious that, we need to be more efficient and effective in managing our resources to ensure rapid economic growth and transformation.
“Going beyond aid is an inevitable conversation, and we can choose to confront it now or postpone it to our peril.
“In fact, a greater illusion is for us to think that, we can continue to build schools to educate our children, provide adequate health services for a healthy Ghana, provide safe and adequate water, provide sanitation services for a clean Ghana, provide law and order for a good society, on the inexhaustible charity of donor projects.”
One of the key pillars of the vision of moving Ghana beyond aid, Vice President Bawumia reiterated, was to enhance domestic revenue, while pursuing a more transparent, prudent and accountable use and management of public resources.
“For now, Ghana Beyond Aid is resting on five pillars and the first and foremost is to enhance domestic revenue mobilisation. And this, we must do in ways that do not undermine productive activities, or distort private incentives for work.
“Second, is to encourage higher private savings as a source of funds loaned to support domestic credit and capital market, and expand financial inclusion.
“Third, is to pursue a more transparent, prudent and accountable use and management of public resources.
“Fourth, is to leverage our resources that are buried deep in the ground for development in more innovative ways than the conventional model of royalty and tax regimes.
“Fifth, is innovative mobilisation and use of external resources in the emerging development finance landscape.”
Vice President Bawumia urged the participants to come up with new ideas and better ways of improving revenue collection.
“Let me assure you that we are committed to implementing policies and operational steps that will put us on a sound footing to mobilise the required revenue for sustainable development,” Dr Mahamudu Bawumia conclude.