Mahama: AI-driven tax collection could pave way for lower corporate taxes

President John Dramani Mahama says his administration is prioritising the use of technology and artificial intelligence (AI) to improve tax collection efficiency, a move he believes could create room for future reductions in corporate income tax and other taxes.

Speaking during a courtesy call by the Kwahu Business Advocacy Group at the Jubilee House, the President said government is shifting its focus from introducing new taxes to improving revenue mobilisation through more efficient tax administration.

He explained that his administration believes higher tax compliance and better collection systems can generate sufficient revenue without placing additional burdens on businesses and citizens.

“We’re concentrating on efficiency in collecting the taxes because we believe that if we collect the taxes more efficiently, we don’t need to introduce new taxes,” Mahama said.

The President noted that government has already abolished what many Ghanaians described as nuisance taxes, including the COVID-19 Levy and the Electronic Transfer Levy (E-Levy), while reducing the overall value-added tax (VAT) burden.

Looking ahead, Mahama said technology, particularly artificial intelligence, will play a central role in modernising tax administration.

“When we start AI in VAT collection and AI in corporate income tax collection, please don’t be afraid because if it increases revenue and it’s doing well, then we can reduce the corporate income tax. We can reduce the VAT rate,” he said.

He, however, cautioned that any future tax reductions would depend on sustained improvements in revenue collection and should not be interpreted as an immediate policy announcement.

“I don’t want you to say government will reduce VAT and taxes soon. I said if, in future, we collect more efficiently, then we can give the benefits to businesses by reducing the taxes,” the President clarified.

Mahama said improving tax administration forms part of his government’s broader economic reform agenda aimed at creating a more business-friendly environment, strengthening investor confidence and supporting private sector growth.