Digitalization as a Pillar for Economic Sovereignty
The Commissioner-General of the Ghana Revenue Authority (GRA), Anthony Sarpong, has emphasized that digitalization plays a crucial role in ensuring the nation’s economic sovereignty. His remarks were made during the 2025 Deloitte Africa Tax Conference held in Accra, where he highlighted the importance of homegrown revenue mobilization for national development.
Mr. Sarpong pointed out that with the decline in foreign donor support across the continent, innovative approaches to domestic revenue generation have become essential. He warned that without these measures, ongoing fiscal consolidation efforts could face challenges.
Introducing Sentinel: A Step Toward Digital Taxation
One of the initiatives GRA is piloting is called Sentinel, which is set to be fully rolled out next year. This system aims to ensure effective taxation of online transactions. Mr. Sarpong noted that the taxpayer of today and the future will be digital, and therefore, the authority must be prepared to serve them efficiently.
He also mentioned that the electronic VAT system’s rollout is progressing well. “The journey of VAT digitalisation has started with the E-VAT. At the moment, we have onboarded over 3,000 taxpayers and the journey is continuing.”
Achieving Revenue Targets
According to Mr. Sarpong, GRA is on track to exceed its year-end target of GH¢190 billion, having already collected GH¢89.45 billion by the end of August 2025. However, he acknowledged that the untapped informal sector continues to affect revenue mobilization.
“We are gradually bringing the informal sector into the tax bracket,” he said. The informal sector contributes an estimated 30 percent to the country’s GDP and cannot be excluded from the tax net. This means that one-third of potential tax revenue comes from this sector.
Leveraging Technology for Inclusive Growth
Mr. Sarpong stressed that technology is the key to harnessing the potential of the informal sector and bringing everyone into the tax net. However, he warned that the digital transition must be inclusive.
“We must ensure that smaller enterprises, informal sector actors and cross-border traders are not left behind,” he noted. He called for partnerships to achieve results, stating that collaboration creates harmony between taxpayers, the GRA, and the government.
Shifting Focus From Enforcement to Engagement
Mr. Sarpong indicated that GRA is focused on shifting from enforcement to engagement and from compliance monitoring to compliance facilitation. Initiatives like electronic invoicing, real-time data integration, and streamlined e-portals are not just technological upgrades but are designed to build a “culture of voluntary compliance.”
“When all of us contribute our quota, we raise the necessary revenue for national development,” he said. The goal is to create a transparent system where taxpayers understand their obligations and can meet them efficiently, thereby building trust.
Embracing Transparency and Innovation
This year’s conference, the first in West Africa, was centered around the theme ‘Building resilient tax systems: Embracing transparency, digital innovation and global reform in Africa.’ The discussions highlighted the need for African nations to embrace digital innovation and transparency to strengthen their tax systems.
Mr. Sarpong’s insights underscore the importance of adapting to the digital age while ensuring inclusivity and fostering a culture of compliance. As GRA continues its journey toward a more efficient and transparent tax system, it sets a precedent for other African countries seeking to enhance their revenue mobilization strategies.