Ghana’s Finance Ministry to review all existing tax systems in 2020, here’s why

Ghana’s Finance Minister Ken Ofori-Atta has disclosed that the ministry will review the country’s existing tax systems in the country.

Finance Minister Ken Ofori-Atta

This, according to him, will help introduce more private sector-led solutions in the revenue mobilisation efforts.

Mr Ofori-Atta’s said this while in an interview with Accra-based Citi FM ahead of the 2020 budget presentation.

His comment follows the inability of the Ghana Revenue Authority (GRA) to meet its domestic revenue mobilisation targets in the last four years and issues of not having full data of companies in the country.

He noted that countries do not grow because of customs revenue, which is a significant chunk of domestic revenue.

“We really need to disabuse ourselves of that; make it efficient nonetheless but really look at corporate taxation and spreading the net in a more effective way. We look to reviewing all of our tax systems in 2020,” he said.

Adding that, come 2020, the government will move away from the piecemeal approach to the reforms and conduct holistic reforms that would place a premium on the role played by private sector-led initiatives in mobilising revenue.

“We have been responding, changing different handles to suit the moment. I think it is time to look at the whole infrastructure of taxation especially as we are now looking to private sector solutions to the transformation,” Mr Ofori-Atta disclosed.

Meanwhile, President Akufo-Addo has urged the governor of the Bank of Ghana to take a second look at the current prevailing interest rate in the country ahead of the 2020 budget presentation.

According to him, the over 20 percent rate banks lend to individuals and entities is on the high side and discourage many from venturing into a productive business.

2020 Budget presentation

The Finance Minister is expected to present the 2020 budget to Parliament on November 14, 2019.

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