Dominic Naab, the Assistant Commissioner of the Policy and Programmes Department at the Ghana Revenue Authority (GRA), has stated that transitioning Ghana to a cashless system would significantly ease the process of tax collection.
He highlighted that the current cash-based system presents one of the greatest challenges to effective tax collection, often leading to non-compliance among taxpayers.
Mr. Naab explained that many taxpayers exploit the cash system to evade proper classification and accountability, complicating the GRA’s efforts to collect taxes efficiently.
He emphasised, “If you ask about our biggest challenge, it probably has to do with the cash system that we operate in tax collection. I can assure you that if we are able to move from a cash system to a cashless system, as we have in other countries, GRA will not even struggle to collect taxes in Ghana.”
He also noted that the informal nature of Ghana’s economy further complicates tax collection, making it difficult to categorise and address taxpayers appropriately.
In addition to these structural challenges, Mr. Naab mentioned that the reluctance of some citizens to engage with tax authorities hinders effective collaboration, as they often feel intimidated by tax officials.
To foster better cooperation, Mr. Naab urged the public to view tax collection as a partnership for national development.
“We plead and beg for collaboration. We want to collaborate with everybody—individuals, institutions, and everyone,” he said.
When questioned about the use of collected taxes, Mr. Naab clarified that the GRA’s mandate is solely to collect taxes, while the allocation and use of these funds fall under the purview of the Ministry of Finance.
He also called for a more positive attitude toward tax payment, pointing out that negative perceptions about taxes create additional challenges for the GRA.
To ensure better compliance, Mr. Naab outlined specific policies, including the appointment of community ambassadors and the introduction of informant rewards and incentives for those who are committed to paying their taxes.
These measures, he believes, will help alleviate the difficulties in tax collection.
Mr. Naab made these remarks during the National Tax Conference organised by Oxfam Ghana on 29th August in Accra.
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