Business General

Bawumia lists causes of revenue shortfalls

Vice President Mahamudu Bawumia has identified inefficient government bureaucracy, lawlessness and non-compliance among other infractions as key causes of revenue shortfalls in Ghana and other developing economies.

Corruption and other infractions also contribute to Ghana’s inability to generate the desired revenue.

Speaking at the ongoing two-day International Tax Conference in Accra, Dr Bawumia said successive governments have over the years ignored the challenge by focusing on crisis management.

That approach, he argues, has not done enough to help the country generate enough revenue to carry through the various developmental projects and policies.

“There’s indiscipline, there’s corruption, lawlessness, inefficient government bureaucracy. These are characteristics of many countries where you have this major challenge of domestic revenue mobilisation.”

Deliberate non-compliance with taxes among many other infractions, according to the Vice President, are hurting economies that are otherwise in dire need of taxes to carry through developmental projects.

Government has identified the ports as one of the centers of corruption in Ghana and has developed a strategy to tackle the challenge.

Automation of tax clearance certificates which is expected to commence in October this year is one of the major steps the administration has taken to eliminate corruption at the ports and increase revenue mobilisation.

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