Former Finance Minister Dr. Mohammed Amin Adam has called on his successor, Dr. Cassiel Ato Forson, to expedite Ghana’s tax reforms and push the country’s tax-to-GDP ratio to 18% by the end of 2025—two years ahead of the initial 2027 target.
Speaking in Parliament, Dr. Amin Adam highlighted the progress made under the previous administration, noting that the tax-to-GDP ratio had increased from 13.8% in 2022 to 17% by the end of 2024. He argued that raising it by just one more percentage point within a year is feasible, given the effectiveness of existing digital revenue collection tools.
“If we have successfully increased the tax-to-GDP ratio by 3.2 percentage points between 2022 and 2024, then adding another 1% in a year should be within reach,” he asserted.
The Role of Digitalization in Revenue Growth
Dr. Amin Adam credited the success in revenue mobilization to digitalization initiatives, particularly the Ghana.gov payment system, the Electronic Invoicing for VAT (E-VAT), and the Integrated Customs Management System (ICOMS). He noted that these digital tools had greatly enhanced tax compliance, nearly doubling tax revenue from GHS 75 billion in 2022 to GHS 154 billion in 2024.
To sustain this momentum, he recommended key measures, including:
- Faceless Tax Assessment and Filing – Encouraging electronic tax filing to minimize human interference and curb corruption.
- Digital Tax Records – Mandating businesses and individuals to maintain digital financial records for greater transparency.
- Simplified Tax Audits – Using digital tools to streamline tax audits and boost compliance.
He further urged the full rollout of the I-Tax system to automate tax processes and enhance efficiency.
Prioritizing Local FINTECH Companies
Dr. Amin Adam also advocated for increased reliance on local financial technology (FINTECH) firms to develop tax solutions rather than outsourcing such projects to foreign companies. He stressed that Ghanaian FINTECH companies had played a significant role in advancing tax digitalization and should be prioritized in future initiatives.
“A local content policy should be introduced to ensure that these solutions come from Ghanaian firms rather than being sourced abroad,” he suggested.
Ensuring the Continuation of Digital Reforms
His remarks align with recent statements by former President John Dramani Mahama at the Africa Prosperity Dialogue, where he emphasized the importance of digitalization in Africa’s economic growth. However, Dr. Amin Adam credited Vice President Dr. Mahamudu Bawumia for spearheading Ghana’s digital transformation.
As the new administration takes charge, discussions on tax reforms and economic policies are expected to gain momentum. Dr. Amin Adam’s call reinforces the need to sustain digital initiatives to drive revenue growth and maintain economic stability.
SOURCE: Kweku Asante
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