Nation risks more revenue losses

The nation’s struggles with tax revenue leakages will be substantially reduced through technology integration and data synchronisation across government agencies, experts at the University of Professional Studies, Accra (UPSA)’s National Dialogue have said.

The panel, which featured specialists from academia, tax practice and the mining sector, unanimously endorsed technology as the solution to the country’s persistent revenue collection challenges.

“Technology is the way to go,” a tax expert and Associate Professor at the University of Ghana School of Law, Abdallah Ali-Nakyea, said.

“The Ghana Revenue Authority (GRA) has done very well with automation, making it very easy to file your returns online and get your tax clearance. One key area is how to let our network speak to other institutions,” Prof. Ali-Nakyea, who is also a Director of Ali-Nakyea & Associates, stated.

The country loses approximately GH¢6 billion annually through various forms of revenue leakages, according to figures cited during the discussion.

The sum includes GH¢3 billion lost to corruption, GH¢2 billion loss from the mining sector, and additional losses from transfer pricing and customs undervaluation.

Prof. Ali-Nakyea highlighted that those losses far exceeded the $3 billion International Monetary Fund (IMF) bailout, which was spread over three years.

“Do we need the IMF,” he questioned, suggesting that Ghana could be financially self-sufficient if the leakages were properly addressed through technological interventions.