Tax Experts Tell Government: Use SML’s PPP Style To Rake In Revenue

Benjamin Kweku Acolatse was one of the speakers at a recent panel discussion. Tax experts discussed public-private partnerships (PPPs) and their potential to improve tax revenue in Ghana. They believe technology can help reduce tax revenue leakages if implemented transparently.

The partnership with Strategic Mobilisation Ghana Limited (SML) has raised concerns. Experts argue that these collaborations can provide value for money if managed properly. The discussion took place at the University of Professional Studies, Accra (UPSA). Stakeholders from various sectors explored ways to enhance revenue mobilization.

Speakers noted that PPPs are increasingly vital for tax collection and public services. However, they warned that lack of transparency could hinder success. Dr. Benjamin Kweku Acolatse emphasized the importance of public perception. He stated that even great ideas can fail if people perceive irregularities.

He urged adherence to the PPP Act (Act 1039), which promotes transparency and accountability. Ghana's tax-to-GDP ratio is below the sub-Saharan African average of 16.5 percent, indicating ongoing revenue challenges.

Michael Boateng from KPMG highlighted digital tools like Ghana.gov as beneficial. He said this platform makes tax payments easier, boosting compliance rates. Dr. Charles Gyamfi Ofori from ACEP advocated for data-driven oversight in monitoring revenues.

He mentioned research showing potential quarry sector revenues could be much higher due to gaps in monitoring. Dr. Yaa Serwaa Sarpong from SML presented their upstream monitoring systems for crude oil production. This system allows accurate tracking of oil output and enhances oversight by the Ghana Revenue Authority (GRA).

All panelists stressed the need for transparency in PPPs. Dr. Acolatse suggested publishing all partnership contracts online to increase accountability. He also raised concerns about politically exposed persons (PEPs) involved in these deals.

He called for reforms to address Ghana’s “winner-takes-all” political culture, which breeds mistrust even in legitimate arrangements. To boost tax compliance, several recommendations were made during the discussion.

Alhassan Yusif Trawule from ICAG emphasized the importance of tax education for citizens. He stated that understanding taxes drives compliance among taxpayers. Dr. Ofori called for stronger regulations on beneficial ownership to ensure transparency regarding company ownership in PPPs.

He also pointed out neglected areas like small-scale mining, which contributes only 5 percent to national mining revenue despite producing 40 percent of gold output. Mr. Boateng noted that Ghana should not ignore its informal sector, which comprises about 80 percent of the economy.

He suggested innovative partnerships with educational institutions to help informal operators meet their tax obligations effectively. The panel concluded that while PPPs have potential, their success relies on transparent implementation and strong regulatory frameworks involving all stakeholders.