The government has revealed that it will start rolling out automation of all tax clearing certificates, TCCs from October this year.
This is part of efforts to promote tax compliance.
The latest move is aimed at reducing the voluntary use of powers by government officials in the country and alleged corruption by its attendants.
Earlier, with the issuance of handwritten certificates over the years, the process of obtaining clearance certificates was done manually.
This process is characterized by a delay in issuance by the GRA; Challenges in verifying genuine TCC by recipients; use of fake TCC; and alleged misconduct by some tax authorities, among others.
Revealing the news at the 10th Annual International Tax Conference in Accra, Vice President Dr. Mahamudu Bavumiya said that there was a need to automate the tax system to enable the nation to generate more revenue for development.
“Given the problems associated with the Tax Clearance Certificate, I have directed the Ghana Revenue Authority leadership to automate the process of obtaining the Clearance Certificate. And I am happy to announce that the process is complete and will go live in October this year.
“You apply for the certificate online, the system will do the necessary background checks to ensure that you do not have any outstanding tax payments; and then issue an electronic tax clearance certificate on your mobile phone”, he said.
The Vice President also noted that as part of efforts to ensure that Ghanaians are tax compliant, all public services will require a Tax Clearance Certificate before any services can be provided.
He further said that a total of 847,597 tax returns have been filed online till July 2022.
Domestic revenue raising in Ghana is a major challenge, with the tax/GDP ratio being 13.5 per cent compared to 27 per cent for South Africa and 34 per cent for advanced (OECD) countries, thus widening the tax net is important.