Former Finance Minister Dr Mohammed Amin Adam has urged his successor, Dr Cassiel Ato Forson, to accelerate Ghana’s tax reforms and achieve an 18% tax-to-GDP ratio by the end of 2025, two years earlier than the initial 2027 target.

Contributing to a statement in Parliament, Dr Amin Adam argued that the previous administration had made significant progress in boosting tax revenue, with the tax-to-GDP ratio rising from 13.8% in 2022 to 17% by the close of 2024.

He maintained that increasing it by just one more percentage point in a year is achievable, given the existing digital tools and recent revenue trends.

"If we have been able to increase the tax-to-GDP ratio by about 3.2 percentage points between 2022 and 2024, then achieving an additional 1% this year should be possible,” he stated.

Digitalization as a Revenue Driver

Dr Amin Adam credited digitalization initiatives for the revenue boost, highlighting key platforms such as the Ghana.gov payment system, the Electronic Invoicing for VAT (E-VAT), and the Integrated Customs Management System (ICOMS). He revealed that these innovations had significantly improved tax compliance, nearly doubling tax revenue from GHS 75 billion in 2022 to GHS 154 billion in 2024.

To sustain this momentum, he outlined critical measures to enhance efficiency and compliance, including:
• Faceless Tax Assessment and Filing – Encouraging electronic tax filing to reduce human interference and potential corruption.
• Digital Tax Records – Mandating businesses and individuals to maintain digital financial records for greater transparency.
• Simplified Tax Audits – Leveraging digital tools to streamline tax audits and enhance compliance.

He also called for the full rollout of the I-Tax system, designed to automate tax processes and further increase revenue generation.

Supporting Local FINTECH Companies

The former minister advocated for greater reliance on local financial technology (FINTECH) companies to develop tax solutions instead of outsourcing to foreign firms. He emphasized that Ghanaian FINTECH companies had played a crucial role in the country’s tax digitalization drive and should be given priority in future projects.

“A local content policy should be introduced to ensure that these solutions come from Ghanaian firms rather than sourcing them abroad,” he added.

Sustaining Digital Reforms

Dr Amin Adam’s remarks echo recent comments by former President John Dramani Mahama at the Africa Prosperity Dialogue, where he underscored the role of digitalization in Africa’s economic growth. However, the former finance minister credited Vice President Dr Mahamudu Bawumia for leading Ghana’s digital transformation.

As the new administration takes charge, discussions on the country’s tax-to-GDP ratio and economic reforms are expected to intensify.

Dr Amin Adam’s call signals the importance of maintaining digital initiatives to drive revenue growth and ensure economic stability.