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Terkper: Institute domestic scheme to reform tax system

The former finance minister said the introduction of the tax scheme will help relevant bodies track and identify non-taxpayers

Story Highlights
  • The former finance minister said the introduction of the tax scheme will help relevant bodies track and identify non-taxpayers.
  • That is why like ICUMS, for the customs entry point, we need a domestic tax system that is automated and that was going to be phase two of what I’m going to talk about. So, once you’re captured, they create their database,” he stated.

Seth Terkper, a former finance minister has called for reforms in the country’s taxation system by establishing a domestic tax scheme.

According to him, taxes play an important role in building a country’s economy, hence, the need for the government to increase its equity drive to help rake in revenue.

Speaking on the Asaase Breakfast Show, Terkper said the introduction of this domestic tax scheme will help relevant bodies track and identify non-taxpayers as well as create a unified tax collection base for the country.

“Taxation is about equity so there’s some merit in that. You’re here and you’re paying taxes, you don’t have the option of filing. Those who are in the semi-formal, have a location, you know them, that’s why the location GPS thing is good. GRA will have them in their database and they’ll use that to now identify.

Proposed Domestic Tax Scheme

“Which sectors are growing which reason we rebase our economy? The service sector is naturally growing, but are they in the tax net? So, you begin to bring them into the tax next, first to make them also pay the current income tax on their profits, that when they go and buy, you inspect their VAT invoices.

…That is why like ICUMS, for the customs entry point, we need a domestic tax system that is automated and that was going to be phase two of what I’m going to talk about. So, once you’re captured, they create their database,” he stated.

Government could’ve managed economy better

Seth Terkper said the NPP government could have managed the country’s economy better than it has done.

Terkper said with the kind of resources available to the government he believed the economy should have been well managed amid the COVID-19 pandemic.

Speaking with Kwaku Nhyira-Addo on the Asaase Breakfast Show Thursday (10 February), he said, “Definitely [it could have been better], coming in 2017, the first obvious one was the additional oil fields …crude oil prices recover that’s a bonanza; which should have been managed well. From about 70,000 barrels within two years to nearly 200,000 barrels with an additional increase. Could we have put money into the buffers that are dependent…the Petroleum Revenue Management Act (PRMA)…so could it have been better? Definitely.”

He said in three years, the current NPP administration had received more revenue from the country’s oil than the past NDC administration under the late Atta-Mills and John Mahama put together.

Nicholas Brown

Asaase Radio 99.5 – tune in or log on to broadcasts online
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Nicholas Brown

I am a multi-media journo with Asaase Radio. I tell stories that shape the difficulties of life. Let's talk about anything acting, stage direction and making an impact.

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