Dr Adrian Alter, IMF Resident Representative and Head of Office in Ghana, has called for a stronger focus on domestic revenue mobilisation through the removal of tax exemptions and incentives, alongside accelerated digitalisation of the tax system.
Speaking during a panel discussion at the Business Roundtable Extended under the theme “After the Corrections: Building Resilient Economic Pillars for the Next Decade”, Dr Alter said Ghana could raise more domestic revenue without undermining private investment and foreign direct investment (FDI).
Level playing field needed
Dr Alter said the government faced a delicate balance between mobilising revenue to meet important development needs, including infrastructure spending and creating an environment in which private investment could thrive.
He said the challenge required the government to ensure that businesses operated on a level playing field.
“The government needs to eliminate these exemptions, tax incentives, and level the playing field for everyone,” he said.
According to him, addressing exemptions and incentives would help strengthen domestic revenue mobilisation while avoiding measures that could unnecessarily constrain private investment.
Digitalisation key to closing revenue leakages
Dr Alter identified digitalisation as another critical pillar for improving Ghana’s revenue mobilisation efforts, saying the issue had not received enough attention in discussions on domestic revenue.
He said the Ghana Revenue Authority (GRA) had already introduced systems aimed at strengthening revenue administration, with further digitalisation of government capabilities being pursued under the PCI.
He specifically highlighted the Integrated Tax System (I-TAS) as an important tool in the process.
Dr Alter said the system needed to be fully rolled out and designed to connect income tax, personal income tax, corporate income tax and Value Added Tax (VAT) through the same identifier.
Such integration, he said, would enable the government to better identify revenue shortfalls and leakages.
Revenue mobilisation not simply about higher taxes
In his concluding remarks, Dr Alter stressed that Ghana’s efforts to increase domestic revenue should not be reduced to raising tax rates.
“In a nutshell, it’s not about increasing taxes. It’s about ensuring a level playing field,” he said.
His position placed the removal of exemptions and incentives, alongside digital integration of the tax system, at the centre of efforts to strengthen domestic revenue mobilisation while maintaining room for private-sector and foreign investment.
