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Increase investments in digital tax collection - Government told

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Wed, 7 Sep 2022 Source: rainbowradioonline.com

Executive Secretary of African Tax Administration Forum, Logan Wort, has advised African countries, particularly Ghana, to increase investments in digital tax collection systems and tighten taxes on international trade.

He stated that as countries prepare to implement the African Continental Free Trade Agreement, it is critical for them to find new and innovative ways to broaden the tax base (AfCFTA).

He stated that in Ghana, for example, 70% of the economy comes from the informal sector and that unless we find other innovative ways to bring them into the tax net, we will reduce our income because we will be unable to charge certain tariffs (90% of rechargeable tariffs will be eliminated under the new regime) (AfCFTA).

He was speaking on the sidelines of the 7th Tax Congress, which is attempting to devise strategies to deal with revenue shortfalls expected as a result of the implementation of the continental free trade agreement.

He argued that although the digital economy has increased over the last decade by about $3 billion annually, we need to probe the impact on domestic tax.

For this reason, he wants Ghana to invest in the digitalisation of tax administration, advance policies for taxing multinational enterprises.

Source: rainbowradioonline.com
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