Ghana and South Korea have signed a $2.2 million grant agreement to modernize Ghana's tax administration system and increase domestic revenue collection. The goal is to broaden Ghana's tax base and mobilize more resources internally to fund development projects.
The project will establish a master plan to digitalize and streamline Ghana's various tax systems by incorporating digital platforms like mobile money. This is expected to make tax collection more efficient and transparent.
John Ampontuah Kumah, Ghana's Deputy Minister of Finance, signed the agreement on behalf of Ghana while Dong Hyun Lee, the Country Director of the Korea International Cooperation Agency (KOICA), signed for South Korea.
Kumah said at the signing ceremony that the master plan would help Ghana significantly improve domestic revenue mobilization. He noted that the agreement represents tangible collaboration between the two countries to improve the lives of their citizens and promote sustainable development. Kumah called it a watershed moment in Ghana-Korea relations.
Lee stated that tax revenue is crucial for socioeconomic progress in areas like infrastructure, education, and welfare services. He said the project will help Ghana put in place a more modern and resilient tax administration system that contributes to long-term transformation.
Drawing on Korea's own economic growth experience, Lee emphasized the importance of institutional frameworks to implement the master plan in addition to business development. The $2.2 million project will involve capacity building for Ghana Revenue Authority and finance ministry officials.
Consultations will be held to broaden the tax base by utilizing mobile money transaction data and promoting e-invoicing for more transparent cross-border transactions. Ghana's various tax systems like the ICUMS customs system will be linked through an electronic cash receipt system and integrated tax portal to make tax payments more convenient for citizens.
In summary, the grant agreement aims to help Ghana modernize its tax administration and digitalize tax systems to increase revenue collection efficiency. This is seen as critical to funding Ghana's socioeconomic development agenda through mobilizing more domestic resources. The implementation of an effective master plan supported by institutional reforms and capacity building is expected to transform Ghana's tax system and administration for the better.
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