Ghana has signed a $2.2 million grant agreement with the Republic of Korea to establish a master plan to modernise tax administration in the country.

The project aims to increase domestic revenue collection in Ghana by streamlining various tax systems and incorporating them into digital structures such as Mobile Money (MoMo) platforms.

Mr John Ampontuah Kumah signed on behalf of the Ghanaian government, while Mr. Dong Hyun Lee, Country Director of the Korea International Cooperation Agency (KOICA), signed the agreement on behalf of the Korean government.

At a short ceremony in Accra on Friday, Mr Kumah said he was confident that the establishment of the master plan would help broaden Ghana’s tax base and increase domestic revenue mobilisation.

“These projects are not just agreements, they represent the tangible efforts and collaboration between two nations to improve the lives of our citizens and contribute to sustainable development of Ghana,” he said.

He said the agreement was a watershed moment in Ghana-Korea relations and that its successful implementation would have a long-term positive impact on the livelihoods of Ghanaians.

Mr. Lee noted that the project’s implementation would entail collaboration with top Korean tax experts to tailor the master plan to Ghana’s context to restructure the country’s tax administration.

He stated that tax revenue was crucial in every socio-economic area, as was the use of resources like land, energy, and human empowerment for sustainable development.

“Hopefully, this project will help our Ghanaian partners put in place structures and initiatives for a more modernised, resilient tax administration system…and contribute to a positive, long-term transformation in Ghana,” Mr Lee said.

Recounting Korea’s experience with economic growth, Mr Lee stated that it was critical for Ghana to ensure that, in addition to business development, the government created institutional frameworks for the implementation of the master plan.

The $2.2 million project, which would be implemented by the Ministry of Finance and the Ghana Revenue Authority (GRA), would entail capacity building for revenue and taxation officials.

Consultations would be held to widen the Value Added Tax and income tax bases using the MoMo transactions database and promoting e-invoicing to improve the transparency and reliability of cross-border commercial transactions.

In addition, tax systems would be linked, including import VAT-related Customs Systems (ICUMS), the establishment of an electronic/mobile cash receipt system, and an integrated tax portal for citizens to effortlessly pay their taxes.

Source: GNA