Former Minister of Finance, Mohammed Amin Adam (MP, Karaga) has urged the government to pursue ongoing digitalisation initiatives started by the erstwhile administration that has enhanced taxation in the country. He said digitalisation has come to stay therefore it is imperative the current administration leverages existing digital revenue mobilisation solutions such as Ghana.gov, e-VAT and ICUMS to improve collection and enforce compliance.
According to him, these solutions have contributed to raising the needed revenue above threshold with tax-to-GDP ratio in Ghana at 13.8%. However, by the end of last year in 2024, tax-to-GDP stood at 17% which marked a significant leap from the 13.8% recorded in 2022, meaning by the December 2024, Ghana’s total revenue had increased from GH¢75 billion to GH¢154 billion as a result of digital solutions that were relied on by the government at the time. He encouraged the current Finance Minister Cassiel Ato Forson to continue pursuing the policies and measures bequeathed him in order to achieve the tax-to-GDP target of 18% this year, which way before the targeted year of 2027.
“I want to invite the new Minister for Finance to continue to pursue these policies and measures to achieve the tax-to-GDP ratio of 18% this year and not 2027. That is possible. That can be done. If we’ve done it from 2022 to 2024 by about 3.2 percentage points, then it should be possible for them to achieve it if we have to do one percentage point this year.”, He said
Dr. Amin Adam was contributing to a discussion in Parliament Wednesday on a statement presented by Kennedy Osei Nyarko (MP, Akim Swedru) on the topic; “Exploring Synergies Between Technology and Digitalisation to Enhance Revenue Mobilisation and Effectiveness”. Mr. Osei Nyarko alluded to the gains that digitalisation in domestic revenue mobilisation has brought to the country that saw a significant increase by 237.6% from GH¢45.5 billion in 2020 to GH¢153.5 billion in 2024. Over 70% of Ghana’s domestic revenue came from digital platforms within the period which underscores the importance of digitalisation as an engine for economic growth. His statement therefore urged the Minister of Finance Cassiel Ato Forson to continue making digitalisation a driving force in the government’s effort to mobilise domestic revenue.
“Mr. Speaker, data from the Ghana Revenue Authority annual report gives evidence to suggest that the movement of revenue mobilisation activities from manual processes to digital platforms is leading to some gains. The GRA’s revenue performance over the last five years has shown steady improvement, underscoring the impact of digitalisation on Ghana’s tax system and administration. In 2020, Ghana made a revenue of GH¢45.5 billion. In 2021, Ghana made GH¢57.43 billion. In 2022, Ghana made GH¢75.34 billion. In 2023, Ghana made GH¢113.43 billion. In 2024, Ghana made GH¢153.5 billion. Mr. Speaker, this is a record-breaking milestone driven by digitalisation. Over the past five years, the Ghana Revenue Authority performance has increased from GH¢45.5 billion to GH¢153.5 billion in 2020, a remarkable 237.6 percent surge largely driven by digital transformation. It should be noted on record that over 70 percent of revenue in 2024 came from digital platforms.”
That notwithstanding, the participation of domestic fintech companies through their array of financial technology products in the economy can achieve Ghana’s digital objections as alluded by Dr. Amin Adam. In his opinion, local fintech companies have been used in the past 3 years by the government to implement revenue measures successfully. He further called on the current administration to develop a local content policy “that will guide the utilisation of local fintech companies rather than sourcing these solutions from abroad.”