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Ghana moves to boost tax income via digitised system

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Ghana is seeking to boost domestic revenue with a digitised tax system that improves compliance, Vice President Mahamudu Bawumia said in a speech to students at Ashesi University in the Eastern region.

The West African nation’s revenue fell short of target by 12 percent in the first seven months of the year and raises concerns about the country’s ability to finance its debts.

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Ghana has a major challenge in domestic revenue mobilisation with a tax-to-GDP ratio at 14.3 percent, compared with 27 percent for a peer country such as South Africa and 34 percent in advanced economies, Bawumia said.

That has led to the implementation of a national ID card, which serves as the tax identification number and has increased the taxable adult population to 86 percent from a low of 4 percent in early 2017, he said.

Africa’s biggest gold producer has also started the process to launch a central bank digital currency next year, “The E-Cedi is a digital form of the physical cedi in circulation, it is a legal tender issued and backed by bank of Ghana,” Bawumia said.

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