The Commissioner of the Ghana Revenue Authority (GRA), Anthony Kwasi Sarpong, has emphasized the need for tax education to boost voluntary tax compliance in Ghana.
According to him, educating citizens on their tax obligations will help expand the tax net and increase government revenue.
Speaking on Channel One TV’s The Point of View on March 3, Mr. Sarpong highlighted the challenges in the domestic tax revenue mobilization and noted some of the strategies that are needed to address them, describing paying tax as not palatable for everybody.
“Paying tax is not palatable for everybody, but we must ensure that all citizens contribute as a civic responsibility,” he stated. He added that one of the major focuses of the GRA will be to encourage public education on taxation to help them voluntary compliance.
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Mr. Sarpong identified three key areas that can help improve tax compliance. He spoke of the use of technology, tax education, and also strengthening partnerships.
According to him, integrating technology into tax administration will make tax collection fast and more efficient.
“Through AI and technology, we need to harness data to identify businesses that are outside the tax net and bring them in gradually,” he added.
He stressed that tax education should be an ongoing effort; this will ensure that both individuals and businesses understand their responsibility.
“We need to educate citizens so they appreciate the importance of taxes and the role they play in national development,” he stated.
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Background:
Ghana has long struggled with low tax revenue mobilization compared to the middle-income people. Which is partly caused by the large informal sector; this accounts for over 70% of the country’s GDP. Many businesses and individuals remain outside the tax net. This is because there is inadequate documentation, a lack of awareness, and weak enforcement.
Additionally, there is decreasing donor support and also an increasing pressure to generate domestic revenue; this has made the authorities look for sustainable solutions.
The Commissioner has therefore called on stakeholders, including the government and the private sector, to participate in promoting tax education and also ensuring compliance.
“We must collect taxes in a manner that is fair and responsive,” he concluded.