Ghana is gradually moving towards a digitised tax system that will boost domestic revenue generation. Over the years, local tax laws have been an ineffective strategy to increase the tax net. In fact, the introduction of initiatives to digitalise the tax system is a step in the right direction.
Graphiconline recently published a story about Vice-President Dr. Mahamudu Buwumia making an appeal to the Ghana Revenue Authority (GRA) to consider the Ghana Card as the basis to widen the country’s tax net. He said since the merger of the Tax Identification Number (TIN) into the Ghana Card system, the government has been able to increase the number of people with TIN from the four percent it inherited in 2017 to the current 85 percent.
Dr. Mahamudu Bawumia made the appeal in a keynote address at the 57th Congregation of the Kwame Nkrumah University of Science and Technology (KNUST) in Kumasi last Friday. He lamented that it is a very lazy approach to keep looking for taxes from people who are already paying their taxes, when you can rope in the vast majority of workers who are not paying their taxes.
The Vice President has been at the forefront of digital transformation in the country, with government spearheading various initiatives to harness the power of technology for the betterment of the nation. He used the opportunity to appeal to the Ghana Revenue Authority (GRA) to leverage the Ghana Card to widen the tax net of the country.
The Chronicle believes this is a commendable move that promises to revolutionise our tax system. The Ghana Card, a multipurpose national identification card, has already proven to be a game-changer in streamlining government services and facilitating citizen engagement.
The Chronicle is very sure that, with its extensive database and advanced biometric features, the Ghana Card has the potential to transform the way taxes are collected and administered in the country.
One of the key advantages of leveraging the Ghana Card for tax purposes is the enhanced accuracy and efficiency it brings to the system. By utilising the Ghana Card, the GRA can effectively widen the tax net by ensuring that more individuals and businesses contribute their fair share towards national development.
The Ghana Card will contribute to overall revenue generation and also empower individuals and businesses to access a wider range of financial services, ultimately driving economic growth and poverty reduction.
The Vice President is also reported to have said that the Ghana Card could soon be used purchase vehicles, probably on credit. This is a game changer and The Chronicle finds it very laudable, as creditors will be confident in retrieving their monies once they have access to the Ghana Card details of the debtor.
In our candid view, the Ghana Card’s potential to widen the tax net is a ground breaking development that promises to revolutionise Ghana’s tax system.
As Ghana embraces the digital era, the future looks bright, with an efficient and inclusive tax system and paving the way for a more prosperous nation.