Ghana’s digital economy has the potential to drive economic growth and boost tax revenues, but it requires a comprehensive approach. Canceling the e-levy is a step in the right direction, but more needs to be done to address underlying barriers to digital transaction adoption ¹.
One major barrier is the commission charges imposed by telecommunications companies on digital transactions. According to tax expert Mr. Oteng Amoako Forster, abolishing these charges is crucial to ensure seamless adoption of electronic platforms. This move will incentivize businesses to adopt digital platforms for filing tax returns promptly, enhance revenue monitoring, and reduce tax evasion.
Ghana can draw inspiration from countries like China, which has successfully implemented fee-free digital payment systems like Alipay and WeChat Pay. These platforms have boosted financial inclusion, increased transaction volumes, and significantly enhanced tax compliance. Estonia, another digitally advanced nation, has automated 90% of its tax processes, simplifying compliance and boosting transparency.
To further enhance fiscal efficiency, Ghana can scale up its GIFMIS program for electronic transactions in Metropolitan, Municipal, and District Assemblies. This program has facilitated efficient revenue collection and transparency at the local government level.
Ultimately, Ghana’s tax revenue-to-GDP ratio remains critically low compared to peer nations. To address this, the government must implement public education campaigns, provide subsidies or tax breaks for businesses that adopt digital platforms, and replicate successful international models. By doing so, Ghana can transform its digital economy into a robust revenue-generating sector, driving sustainable development and economic resilience.