Ghana’s tax chief says digital innovation holds the key to unlocking billions in untapped revenue from businesses operating outside formal tax structures, as the authority prepares to launch new tracking systems for online commerce.
Anthony Sarpong, who leads the Ghana Revenue Authority (GRA), told delegates at this week’s Deloitte Africa Tax Conference that technology must drive the country’s revenue strategy as international aid continues its downward trajectory across the continent. He emphasized that self-generated income represents the most sustainable path toward financing national priorities.
The Commissioner General disclosed plans to expand a pilot program called Sentinel, designed to monitor digital transactions, with full implementation targeted for next year. “The taxpayer of today and the future will be digital,” Sarpong stated during Thursday’s conference in Accra. He added that the authority must adapt its services to meet the needs of this evolving taxpayer base.
Ghana’s informal sector contributes roughly 30 percent to the nation’s gross domestic product (GDP), according to GRA estimates, yet remains largely outside the tax net. Sarpong described this gap as a critical challenge, noting that approximately one third of potential tax revenue originates from informal economic activity. The authority believes technological tools offer the most effective means of integrating these businesses into the formal tax system.
The revenue collection body has already onboarded more than 3,000 businesses onto its electronic Value Added Tax (VAT) platform since launching the initiative. “The journey of VAT digitalisation has started with the E-VAT,” Sarpong confirmed. He indicated the enrollment process continues as part of broader efforts to modernize tax collection infrastructure.
By the end of August, GRA had collected 89.45 billion cedis toward its annual target of 190 billion cedis. Sarpong expressed confidence the authority would surpass that goal before year end, despite persistent challenges in capturing revenue from unregistered enterprises.
The tax chief acknowledged that digital transformation must account for businesses of all sizes. Smaller enterprises, traders operating across borders, and informal sector participants cannot be excluded from the modernization process, he cautioned. He characterized this inclusive approach as essential but demanding, requiring collaborative efforts between government agencies, business associations, and taxpayers themselves.
Sarpong outlined a strategic shift within GRA from punitive enforcement toward cooperative engagement. The authority aims to promote what he termed “voluntary compliance” through streamlined digital portals, real time data sharing, and electronic invoicing systems. These initiatives go beyond mere technological upgrades, he argued, representing a fundamental change in how the tax agency interacts with citizens and businesses.
“When all of us contribute our quota, we raise the necessary revenue for national development,” Sarpong told conference attendees. He stressed that transparent systems help taxpayers understand their obligations while building trust between collectors and contributors.
The conference marked the first time Deloitte’s Africa Tax gathering has taken place in West Africa. Organizers selected the theme ‘Building resilient tax systems: Embracing transparency, digital innovation and global reform in Africa’ to frame discussions about modernizing revenue collection across the continent.
Ghana’s push for digital tax collection comes as African nations increasingly recognize the need for stronger domestic revenue mobilization. Declining foreign assistance has forced governments to explore innovative approaches to funding development programs without relying on external donors.
GRA’s technology driven strategy reflects broader trends across the continent, where revenue authorities are adopting electronic systems to improve compliance, reduce fraud, and capture previously hidden economic activity. The success of these digital initiatives could determine whether countries like Ghana achieve fiscal independence or remain dependent on unpredictable foreign support.
Sarpong emphasized that fiscal resilience has moved from aspirational policy language to practical necessity. Without robust domestic revenue generation, he warned, ongoing efforts to stabilize government finances could face serious setbacks. The authority views digital transformation as the most viable solution to this challenge, despite the complexity of implementation across diverse economic sectors.