The Governance for Inclusive Development programme (GovID), implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), has made substantial strides in bolstering Ghana’s financial landscape.
At a recent close-out event, programme manager Raphael Frerking underscored the programme’s remarkable impact on national and subnational institutions, focusing on inclusive development financing in Ghana.
“The GovID programme has played a pivotal role in bolstering Ghana’s financial landscape, focusing on inclusive development financing. We’ve seen remarkable impact both nationally and at the subnational level,” Frerking said.
Commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ) and backed by the Swiss State Secretariat for Economic Affairs and the UK Foreign, Commonwealth, and Development Office, the GovID program collaborated closely with Ghana’s Ministry of Finance and the Ghana Revenue Authority (GRA). This collaboration resulted in the development of critical policies aimed at combatting tax evasion by the private sector. Notable among these policies are the New Transfer Pricing Regulation and the Excise Tax Stamp Policy.
“Our collaboration with the Ghana Ministry of Finance and the Ghana Revenue Authority has resulted in critical policies aimed at combatting tax evasion by the private sector. Notable among these policies are the New Transfer Pricing Regulation and the Excise Tax Stamp Policy.”
Furthermore, the GovID program played a vital role in crafting policies such as the Environmental Fiscal Reform Policy, the updated Double Taxation Agreement Policy, and the taxation policy for High Net Worth Individuals.
Recognising the importance of an effective tax and public financial management system, the program’s interventions extended to the Ghana Revenue Authority, leading to the establishment of the “Exchange of Information on Request” procedure.
This procedure facilitates the exchange of tax information between countries to combat money laundering and tax evasion.
The GovID programme also provided operational manuals for transfer pricing and the taxation of high-net-worth individuals, ensuring clarity and consistency in these processes. In an effort to raise awareness about the significance of taxes, the program engaged religious and traditional leaders in Accra, Kumasi and Tamale to sensitise the public.
As a testament to its success, the GovID programme contributed to a substantial increase in national tax revenue, which surged from GHC 38 billion in 2018 to GHC 44 billion in 2020.
While recent years have seen a decline due to factors such as post-pandemic inflation and global geopolitical events, the program’s impact remains undeniable.
Importantly, the GovID programme did not confine its impact to the national level but extended its reach to districts across all 16 regions of Ghana. It collaborated with 100 partner Metropolitan, Municipal, and District Assemblies (MMDAs), recognising their pivotal role in addressing challenges, particularly during economic crises and climate change adaptation.
Reporting by Caleb Ahinakwah in Accra
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