The outbreak of the coronavirus pandemic has impacted many Governments’ revenue as economic activities have largely slowed down. Some businesses are using digital platforms to continue with the provision of services and sustain their operations. The digital economy has rather seen a pick up during this period.
Speaking to some newsmen in Accra, Tax Analyst, Dr. Abdallah Ali Nakyea, proposed to the Ghana Revenue Authority (GRA), to put in place stringent measures to tax digital business transactions. He added that this will enable the Authority to increase its revenue to meet or exceed revenue targets. Dr. Ali Nakyea said taxing the digital economy should reduce the burden on the regular businesses whose operations have been adversely impacted by the pandemic.
“COVID-19 has proven that businesses can be done online, but how are we getting a share as a government from all these incomes being generated? So I think it will help the GRA to start profiling taxpayers so we can move from the 80/20 paradox; this is where we have 80% of taxpayers contributing only 20% of tax revenue and 20% contributing 80% of tax revenue, and this is the category who appears to be the hardest hit,” he explained.
According to Dr. Ali-Nakyea, the coronavirus pandemic has slowed down operation for some sectors whiles other sectors are benefiting immensely hence the need to tax the digital economy.
He said; “If people are now manufacturing PPE, face masks and all others, they are not going for free, but they sell them to generate revenue. The question is, how do we get the government’s share to support others who are not doing well in their industry so they can also bounce back. This is how we will get the economy to grow”.
The Minister of Finance, Ken Ofori-Atta, has already estimated that the shortfall in import duties, petroleum receipts and the Coronavirus Alleviation Programme will cost the Ghanaian economy 9.5 billion cedis.
In addition, Mr. Ofori Atta believes that there will be an ultimate fiscal gap of 11.4 billion cedis.
In an address to MPs in March 2020, the Minister of Finance said that pandemic will also take a toll on Ghana’s GDP growth.