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Ghana: Digital tax system can help rebuild public finances, economists say

By David Whitehouse
Posted on Thursday, 11 November 2021 12:11

Ghana's Vice-President Mahamudu Bawumia aims to achieve a digital tax collection system. REUTERS/Luc Gnago

Ghana’s plans for a digital tax system can play a big part in helping the country to bring public finances under control, economists say.

Plans to introduce a digitised system were announced by vice president Mahamudu Bawumia in early November. Bawumia said that broadening the tax net is “imperative” and said that a new mobile tax filing application is now ready for use.

The plan has the potential for “immense positive outcomes”, says Courage Kingsley Martey, senior economist at Databank Group in Accra. “We believe issues of corruption in the tax system, evading the tax net and under-declaration of taxable income could be significantly reduced if the system is digitized.”