Leverage technology to tax online businesses – KPMG tells government

The Partner and Head of Tax at KPMG Ghana, Kofi Frempong-Kore, has urged the government to take advantage of modern technology to improve tax collection and expand the tax net.

According to him, the e-commerce sector is thriving due to the innovative ways people are using digital platforms to conduct business.

He suggested that the government could adopt similar strategies to enhance tax collection and bring the informal sector into the tax net.

Speaking on the sidelines of the KPMG Post-Budget Forum on March 13, 2025, he stated, “Technology plays a crucial role. We need to leverage technology to identify individuals operating in the informal sector. The Commissioner-General even mentioned that if you go on Instagram now, you’ll find many people, including some of my colleagues, engaged in trade.

“They advertise their products on Instagram and Facebook, keep the goods in their car boots, meet buyers to complete transactions, or even deliver the items directly. Today, people are delivering food using technology. This means the government can use the same digital tools to collect revenue,” he explained.

Frempong-Kore also expressed concern over Ghana’s narrow tax base, which he noted relies heavily on the formal sector.

“Less than 2 million Ghanaians are paying taxes out of a population of over 30 million, and these are mainly individuals employed in the formal sector. The focus should be on the informal sector, where the majority of Ghanaians operate. That is where I believe the government should direct its efforts,” he emphasised.





SSD/MA