CEO summit: For every 10 businesses, only 4 pay VAT - Anthony Sarpong

Added: 2026-05-31

[00:00:00]So that businesses that are compliant stop paying the implicit subsidy for those who are not.

[00:00:07]This way, the revenue this country can pardon me. This way, the revenue this country needs to come from a wider, fairer base rather than a deeper cut into the same ones.

[00:00:23]Second, which we refer to as capability, resonates with the governor's point on technology and innovation.

[00:00:31]The second proposition, which is technology renovation, will form a bedrock to structurally change our institution and the efficiency with which we collect taxes.

[00:00:44]Historically, the capacity of the state to administer tax has been constrained by the limits of manual systems. And in every one of these manual touch points, the same problems have repeated themselves. Subjectivity, dispute, delay, and opportunity for leakage.

[00:01:05]This is not a specifically a Ghanaian problem. It is a feature of half nearly every African tax administration operates and its binding constraints on our technological renovation.

[00:01:19]These constraints have to be broken by technology. Modern tax administration platforms and systems and the ability to integrate data across previously silo databases have collapsed. And therefore, we are breaking the bounds of reforms to improve efficiency through the use of technology.

[00:01:41]I want to note that technological use is not about only incremental improvement on our old job. It is the ability to do more, to do it faster, and to be better.

[00:01:54]In this respect, we are on a journey to modernize our tax administration systems relying on technology as an enabler.

[00:02:02]And let me give a few examples. As part of our customs modernization and as many of you are aware, we have introduced the AI publican software as a digital inspection decision support tool. Your Excellency, we thank you for your support. We want to claim that GRA publicly is a first public institution to use AI across board affecting many businesses.

[00:02:32]The purpose is to reduce human discretion, make faster assessment, create a fairer basis for all import and create a fairer basis for all import assessment.

[00:02:44]Indeed, Your Excellency, the results for the first 2 months of deploying the AI is amazing and promising. In the month of April alone, we added 1 billion to our revenue generation for customs. And Your Excellency, we are on course in the month of May and [snorts and clears throat] the results as at yesterday is showing that we are going beyond 1 billion for the month of May.

[00:03:11]Second, our integrated tax administration system is here.

[00:03:16]For many years, it operated on a domestic system which is challenging.

[00:03:21]This was a 2-year project conceived in 2021 with a deadline of completion in 2023.

[00:03:29]Apologetically, we failed.

[00:03:31]The deadline was moved to 2024 December and again we failed.

[00:03:36]Your Excellency, I'm happy to announce that under your leadership, within 9 months, we have completed the iTax project, resurrected it, and we launch it on 1st April 2026.

[00:03:54]So, I tax went live in April as a limited pilot at our Accra West and Kanashie area. In the month of May, we are onboarding all the large taxpayers on I tax and by the middle of June, taxpayers 85% of our tax basket will be on this new reform, on this new platform.

[00:04:20]The mechanics under the surface matters because that is where the value of your businesses come from.

[00:04:28]I tax is a simple platform onto which we are integrating data that has historically lived in fragmented systems.

[00:04:38]I tax will integrate with the Registrar of Companies and Registrar General's Department. As you register a business, automatically you'll be in the GRA system. I tax will integrate with SSNIT.

[00:04:51]So, for those who pay SSNIT, pension is important, but do not pay taxes so we can build the roads and schools, I tax will help us find you.

[00:05:01]We are integrating with National Identification Authority. So, again, for individuals and the modified taxation, we are able to see that. I tax will integrate with the Passports Authority.

[00:05:14]We found so many Ghanaians with assets and income outside the country and we see that you register with your passport actually when you're opening the account. So, I tax will help us find you. It's simple. If you have paid the taxes in those countries, no problem. If you haven't paid and you need to pay something in Ghana, you will help us to pay a little quota. So, I'm sure last year we wrote to about 1,000 of our high net worth. So, if you receive it, it's a friendly conversation. We thank you for paying, but we will increase the number going forward.

[00:05:46]So, you see that going forward, data is a key in our technology drive to find those who are paying and who are not.

[00:05:53]So, when you see a tax auditor who arrives at your doorsteps, it is because data warranted. It is not because someone happened to pull a file.

[00:06:02]And this is the way we are going, Your Excellency.

[00:06:05]This is what we mean, Your Excellency, when we say we are building a tax system that also fits the 24-hour economy.

[00:06:14]The system itself has to operate at a 24-hour tempo.

[00:06:18]ITAS is what enables us to do that.

[00:06:22]Therefore, I call on you, CEOs and business executives in this room, with your finance team and your advisers, to understand ITAS, to embrace it, and let's work through the change together so that we can collectively raise the necessary revenue. Of course, there are other technological modernizations that is coming. Today, for our VAT, we know that for every 10 businesses, only four are paying the VAT.

[00:06:49]The six either have not registered, or they have registered and and not collecting, or they are registered, collecting, and not remitting to GRA.

[00:07:01]By the third quarter of this year, we are going to implement a fiscal and electronic devices act, which will make it mandatory for all businesses to use government-approved devices so that as you sell, we are able to see the revenue and local government one. But not only that, what is it what is it for what is needed for businesses? For those who are afraid to leave your businesses and and always you have to be in the shop, the GRA system will help you. You don't need to be there. When you make the sales, you'll get the records, so no longer will your people steal from you. All of us will see from one view, and you pay your taxes, and we'll protect your income for you.

[00:07:43]I think you should present this clapping supportive.

[00:07:49]So, the first system is coming. It will revolutionize VAT and to help us increase our tax revenue. And our mighty lord brother has you said we should improve the revenue. We're looking forward for your support. The second area is the online online businesses. So, again, by the third quarter of this year, we are introducing a system. What we've seen is that there's a growing number of taxpayers who are buying cross border outside the country. And yet, their colleagues who are buying in country, they pay the VAT on those items. Your Excellency, we've done the pilot and if you have introduced this system in 2025, we would have increased tax revenue additional of 2.5 billion.

[00:08:37]Your Excellency, again with your support, we are implementing this system that will ensure that as you buy online, you pay your VAT and gradually also move into the digital and crypto assets.

[00:08:50]We've seen a lot of people making a lot of money in crypto. So, after the VAT, please expect us. We are coming there.

[00:09:01]The combined effect of our modernization efficiency is of operations, the use of data to drive decisions, enhance our revenue mobilization.

[00:09:12]So, that brings me to the third proposition which is productive economy.

[00:09:15]And I want to shorten it by saying that in this situation, as businesses grows and we all work together as partnership, both the government, both GRA GRA and businesses, as you grow, we thrive together to support you in driving your businesses and ensure that Uh, as the pie grows, we can also grow. Please permit me, let me make this important point. The fourth, which is sovereignty.

[00:09:43]So, Ghana has spent decades closing the gap between what we produce and what we want to fund through external development financing.

[00:09:51]That arrangement has supported real progress, and I do not want to be dismissive of it, but it is closing.

[00:09:58]Bilateral budget support has fallen sharply across the continent. The conditionalities attached to multinational lending have grown heavier. The development financing envelope that this country would draw upon for differences between domestic revenue and national ambition in real terms is shrinking. We see this in our numbers. The choice that we have is binary. Either we mobilize enough domestic revenue to fund the country, or we say we will borrow, but we know borrowing is not available to us. And therefore, the option available to us is to gather raise the national domestic revenues to support development agenda.

[00:10:40]In conclusion, President, revenue mobilization, tax reforms, digital compliance, the three strands of the topic this morning are not only three administrative goals that are running parallel.

[00:10:56]They are expressions of a single argument about how Ghana builds its fiscal foundation and what that foundation enables. Fairness, because it is a low compliance economy, the compliant business carries a shared burden. Capacity and capability, because technology has finally enabled us to close the gap. Sovereignty, we don't have a choice, we must raise this revenue. In this direction, Your Excellency, GRA's ambition is that by 2028, we should double the tax revenue that of as of 2024. In 2024, the tax reported revenue was 153 billion. Your Excellency, under your leadership, we are expecting by by 2028, yeah, we double that to over 310 billion. This is the way to go. And Your Excellency, we are on course. In 2025, we achieve 182 billion. In 2026, we are focused to raise 225 billion. We believe that this minimum target is achievable and we crave on all of you to support us. So, this is not a bet. This is a work we must do. And that is the partnership we are asking each of you this morning to forge with us so that together we can embrace collectively the responsibility of honoring our tax obligations to mobilize revenue for our collective national development. Chairman, your student stands here. Thank you. Your Excellency, thank you. Ladies and gentlemen, thank you.

[00:12:39]Ladies and gentlemen,