Logan Wort, Executive Secretary of the African Tax Administration Forum, has advised African countries, particularly Ghana, to increase investments in digital tax collection systems and tighten taxes on international trade.
He stated that as countries prepare to implement the African Continental Free Trade Agreement, it is critical for them to find new and innovative ways to broaden the tax base (AfCFTA).
He stated that in Ghana, for example, 70% of the economy comes from the informal sector, and that unless we find other innovative ways to bring them into the tax net, we will reduce our income because we will be unable to charge certain tariffs (90% of rechargeable tariffs will be eliminated under the new regime) (AfCFTA).
He was speaking on the sidelines of the 7th Tax Congress, which is attempting to devise strategies to deal with revenue shortfalls expected as a result of the implementation of the continental free trade agreement.
He argued that although the digital economy has increased over the last decade by about $3 billion annually, we need to probe the impact on domestic tax.
For this reason he wants us to invest in the digitalisation of tax administration, advance policies for taxing multinational enterprises.
“You’ve got to introduce and tighten up your taxes on international trade. You’ve got to tighten up taxes on your digital economy”.
“The digital economy in Ghana has exponentially increased over the last decade by about $3 billion annually, but what is the domestic tax take from there? So, you need to invest in the digitalisation of your tax administration, advance policies for taxing multinational enterprises, and bring more of the middle class into the tax net. This is what the conference will seek to do through well-researched documents from experts and analysts who hails from the continent”, he said.
Due to some revenue losses projected in the short term, the 7th Annual Congress is focusing on the Tax and Revenue Implications of the African Continental Free Trade Agreement.
With the implementation of the AfCFTA, it is expected that Africa’s aggregate tariff revenues will decrease, with some countries being more affected than others.
By: Rainbowradioonline.com/Ghana
