*Minority rejects 3 govt tax platform agreements on VAT, cites "digital opacity" concerns*
The Minority in Parliament has rejected three government agreements on tax administration platforms, citing concerns over transparency and potential abuse.
Addressing the press on behalf of the Minority, Dr. Gideon Boako, Member of Parliament for Tano North Constituency said the agreements cover a Sentinel Cross Border E-commerce VAT monitoring and collection platform, a Ghana Domestic Revenue Collection Platform, and a _Fiscal Electronic Device Platform.
"The minority side has in unison rejected all these agreements that the majority of the strength of their numbers have approved," he stated.
Dr. Boako said while the platforms may appear isolated, they are designed to work together as part of a broader tax administration system.
He noted that the Minority supports the modernization of Ghana's tax administration and the use of technology to improve compliance.
"We support the use of technology to improve compliance. We support digitalisation of public services. We support measures that reduce tax evasion, strengthen domestic revenue mobilisation and broaden the national tax base," Dr. Boako said.
He added that the Minority shares the digitalization vision championed by its flag bearer, Dr. Mahamudu Bawumia, who he said has advocated for a more efficient tax system through digitalization over the last two decades.
However, Dr. Boako said the caucus does not support what it termed "digital opacity."
"We do not believe in digital opacity and any attempt by any government to hide behind digitalisation to fleece the state. That is why we objected to all of this," he said.
The agreements were approved by the Majority in Parliament.
The Minority also accused the government of handing the contract to a foreign company instead of local IT firms.
Dr. Gideon Boako said the bigger question Ghanaians must ask is what the new systems will do.
He explained that the first agreement is for a digital cross border e-commerce VAT monitoring and collection platform.
"It's simply a platform that the government has entered into an agreement that provides a platform with a foreign company," Dr. Boako stated.
He contrasted this with previous government projects, saying local IT firms were engaged to deploy similar technologies.
"Unlike time past where the previous government engaged local Ghanaian IT firms to deploy some of these technologies to help the cause of this country. This government is deciding to seed this to foreign companies," he said.
Dr. Boako cited examples including the Ghana Post GPS address system and http://Ghana.gov, which he said were done by local IT firms.
"This government has come and is going to deploy technology to help with e-commerce transactions, VAT and cross border transactions. And the government is going to use a foreign company," he added.
He also said, any transactions we do on the Internet, the government will apply a VAT on that transaction.
He cites examples of students who want to order textbooks.
Any transactions any Ghanaians makes across borders, on the Internet, Government is going to apply a VAT on it.
"If you're a student in Lagon or any university, and you want to order a textbook, hair or anything on the Internet, Amazon, or any platforms, you're likely to pay two different VAT" he stated.
Report filed by PKB
