The Chairman of the Greater Accra Regional branch of the Association of Ghana Industries (AGI), Tsonam Cleanse Akpeloo, has urged the government to adopt more innovative tax collection strategies in response to the growing digital economy.
He emphasized that broadening the tax base requires leveraging digital tools and targeting untapped sectors to ensure compliance and sustainable revenue generation.
“Tax mobilization has to be innovative. We have to find innovative ways of expanding the task basket, especially in a world that is going ever digital and ensuring that we are using digital means to collect that”
Tsonam Cleanse Akpeloo, Chairman of the Greater Accra Regional branch of the Association of Ghana Industries
Speaking on the need for a modernized approach to tax collection, Mr. Akpeloo stressed that Ghana must explore digital avenues to capture revenue from industries that operate outside traditional frameworks.
He highlighted online financial transactions, cryptocurrency trading, and forex markets as potential sources of tax revenue that remain largely unregulated.
Mr. Akpeloo pointed out that countries such as India have made strides in taxing digital transactions. He referred to Prime Minister Narendra Modi’s approach in bringing together digital traders and implementing taxation policies on their earnings.
He questioned whether Ghana had taken similar steps to ensure that those involved in digital financial activities contribute their share of taxes.
“Who is sitting in a room to discuss how we can tax these people? I’ve seen Prime Minister Modi in India put all of them together, find a very innovative way of getting them to pay a percentage of their tradings and receivables”
Tsonam Cleanse Akpeloo, Chairman of the Greater Accra Regional branch of the Association of Ghana Industries
He warned against the repetitive cycle of discussions on tax challenges without tangible action, calling on policymakers to take decisive steps.
Despite expressing optimism that the current budget signals a shift in approach, he maintained that the government must be resolute in enforcing compliance.
Compliance Burden on Formal Businesses
While advocating for innovative tax policies, Mr. Akpeloo cautioned against overburdening compliant businesses.
He argued that the AGI membership, which consists of formal businesses that regularly pay taxes, should not be subjected to excessive tax scrutiny while many others remain outside the tax system.
“We are happy to support and to ensure that they actually go all out and collect the revenue as opposed to worrying the few AGI members who continue to comply. Otherwise, it becomes a sin to comply because once you comply, they always come after you”
Tsonam Cleanse Akpeloo, Chairman of the Greater Accra Regional branch of the Association of Ghana Industries
He stressed that broadening the tax net should be prioritized over repeatedly increasing the tax burden on businesses already fulfilling their obligations.
The Ghana Card and the Incomplete Tax Integration
Beyond digital taxation, Mr. Akpeloo also expressed disappointment over the incomplete implementation of the Ghana Card’s integration with the Tax Identification Number (TIN) system.
He recalled that the introduction of the Ghana Card was expected to create a comprehensive tax database, ensuring that all citizens contribute to national revenue. However, he noted that despite the linkage, tax compliance remains weak.
“So our hope was that the Ghana Card was going to be linked to the tax ID,” he said.
However, he questioned the effectiveness of the implementation, arguing that many Ghana Card holders were still not paying taxes despite the intended automation of the process.
“I’m not sure that everybody with a Ghana Card is paying tax, as it is. So there may have been a link, but the compliance is still not strong”
Tsonam Cleanse Akpeloo, Chairman of the Greater Accra Regional branch of the Association of Ghana Industries
Former Deputy Finance Minister’s Response
Responding to Mr. Akpeloo’s concerns, former Deputy Finance Minister Alex Ampaabeng acknowledged that while significant progress had been made in integrating the Ghana Card into the tax system, the process remained unfinished.
He explained that the taxpayer audit project, which he spearheaded in collaboration with the Ghana Revenue Authority (GRA) is aimed to strengthen the linkage between tax records, businesses, and banking institutions.
“But there’s a chunk of work that is linking the Ghana Card with people’s businesses, linking banks to everybody,” he explained.
He noted that the Ghana Card now serves as a replacement for the TIN, but admitted that the initiative was incomplete when he left office. He expressed hope that the current administration would continue with the reforms to ensure full compliance.
“It’s a process which we didn’t finish when we left office, and I hope the current deputy finance minister and administration will finish it”
Alex Ampaabeng, Former Deputy Finance Minister
With the rapid expansion of the digital economy, stakeholders are urging the government to take concrete steps toward ensuring that all economic activities, both traditional and digital, are effectively taxed.
The growing demand for tax equity suggests that significant reforms may be inevitable on the part of the government.
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