The Spokesperson for Vice President Dr. Mahamudu Bawumia says the country’s tax base has broadened following the integration of the National Identification Card and the Tax Identification Number (TIN).
According to Dr. Gideon Boako, this integration automatically raised the number of Ghanaians with Tax Identification Numbers from 4% to 86%.
Speaking on media with Dakyehene Nana Yaw Asante on Adom TV, he stated that “this has made it possible for many Ghanaians to be identified as potential taxpayers”; adding that this increase in taxpayers ensures a raise in domestically mobilized revenues which will cause the Ghanaian cedis to regain strength against other currency.
Dr. Boako added that “countries borrow because their domestically mobilized revenues are inadequate to finance critical expenditures. What governments have done in the past is to increase the tax burden of the few who are willing and pay taxes thereby collapsing business and causing unemployment.”
However, he believes that the steps taken to digitize the economy will see to it that taxpayers are not overburdened.
“We also see how doing this could potentially cut down on our debt levels and consequently help us to attain a relatively stable currency and reduce the rate of inflation,” he added.
He believes digitization would cause a reduction in the trust rate on loans since borrower traceability and identification is the reason for which the rate is high.
His comments follow Dr. Bawumia’s public lecture on the government’s digitization drive at the Ashesi University on Tuesday, November 2.
Among other things, the Vice President highlighted the government’s achievements in digitization and listed other digitization projects the government is expected to embark on.
These projects include the introduction of an E-Pharmacy before the end of 2021, the launch of E-cedi and E-passport, and Zipline supplying medicines to people at home.