The immediate past Finance Minister, Dr. Mohammed Amin Adam, has urged his successor, Dr. Cassiel Ato Forson, to leverage digitalization to achieve Ghana’s projected 18% tax-to-GDP ratio by the end of 2025 instead of the initial target of 2027.
Speaking in Parliament, Dr. Amin Adam highlighted the previous administration’s strides in tax revenue collection, increasing the tax-to-GDP ratio from 13.8% in 2022 to 17% by the end of 2024.
He asserted that an additional 1% increase within a year is feasible, given past performance and existing digital revenue collection tools.
“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. If we have increased it by 3.2 percentage points from 2022 to 2024, achieving 1 percentage point more should be possible,” he stated.
Digitalization as a Revenue Driver
Dr. Amin Adam credited digitalization initiatives for the significant revenue growth, citing the Ghana.gov payment platform, the Electronic Invoicing for VAT (E-VAT), and the Integrated Customs Management System as key enablers.
He noted that these platforms enhanced revenue collection and compliance, boosting tax revenue from GHS 75 billion in 2022 to GHS 154 billion in 2024.
To sustain revenue growth, he emphasized the need for continued investment in digital tax collection systems, particularly the implementation of the I-Tax system, designed to automate tax processes and improve efficiency.
Support for Local FINTECH Firms
The former minister also called for government support for local financial technology (FINTECH) companies, advocating for the use of domestic digital solutions rather than foreign providers.
“I want to encourage them to develop a local content policy that ensures local FINTECH companies play a greater role instead of outsourcing these solutions abroad,” he said.
