As Ghana’s December festivities converge with a steady recovery in global and domestic tourism, the Ghana Revenue Authority (GRA) has intensified tax compliance enforcement among informal and night-market businesses, positioning the festive season as a strategic window to maximise revenue mobilisation.
Recent night-time operations across Accra have seen the GRA inspect bars, lounges, restaurants and pop-up vendors operating within the bustling night economy. Several businesses have been sealed or temporarily shut down for failing to register, issue proper tax documentation or honour outstanding tax obligations. Assistant Commissioner of the GRA, Joseph Adjeikwei Annan, said the exercise revealed persistent compliance breaches. “Some of the infractions, among others, were failing to declare taxes, issuance of computer-generated Value Added Tax (VAT) invoices and selective issuance of VAT invoices,” he stated.
The intensified enforcement coincides with a period of heightened economic activity driven by Christmas celebrations and increased tourist arrivals. According to the UN Tourism Barometer, an estimated 1.4 billion tourists travelled internationally in 2024, representing a virtual recovery of 99% of pre-pandemic levels and an 11% increase over 2023. In Ghana, international tourist arrivals rose to 1,288,804 in 2024, reflecting a 12% increase, although slower than the 25% growth recorded the previous year. UN Tourism projects global arrivals to grow by between 3 and 5% in 2025, signalling sustained expansion in tourism-related activity.
These trends have direct implications for Ghana’s December economy, which traditionally experiences a surge in spending driven by festive tourism, returning diaspora, nightlife, hospitality, entertainment and retail trade. For many businesses, particularly within the informal and night-time economy, December represents the most profitable period of the year, with higher footfall and increased transaction volumes.
It is this concentration of economic activity that the GRA is seeking to harness. Speaking during the night-time enforcement of the Night Market Economy Project, Chief Revenue Officer Alpha Senanu Hossoo noted that many businesses benefiting from the festive boom remain outside effective tax compliance. “We realised that many businesses operate in the night, and what is interesting is that most of these businesses that operate in the night and make money from us do not comply with tax obligations,” he said. “We’ve visited about seven of them this evening, and we came across about five that were not registered. Some are nightclubs, some are pubs, bars, lounges and restaurants. Others are registered, filing returns, but not paying. So, it’s been accumulated in the system.”
Among the businesses affected was Cloud 9, located on Osu Oxford Street, which was sealed after repeatedly failing to regularise its tax status despite several invitations from the Authority. Mr Hossoo explained that enforcement action became unavoidable. “Cloud 9 is an eligible taxpayer that has been difficult to even identify whether it is registered with us. This is the fourth time we’ve been here, and for the fourth time, we have sealed off its premises,” he said. “Top management has taken a decision that we come and seal off their premises, as an indication to other taxpayers that if you don’t comply with the tax laws, GRA has the law behind it to seal off their premises.”
The GRA insists that the festive crackdown is not a one-off exercise but part of a broader, ongoing compliance strategy. Assistant Commissioner Annan stressed that enforcement remains routine and nationwide. “This enforcement goes on unabated. It is a routine mandate, it is a national assignment, and it is both night and day and throughout the week,” he said, adding that operations would continue until businesses comply voluntarily.
The current enforcement drive forms part of the GRA’s two-year Night Market Project, which aims to broaden the tax base by integrating informal and night-time operators into the formal tax system. While enforcement has drawn mixed public reactions, with some applauding the move as necessary for national revenue mobilisation and others questioning its timing during a critical sales period, the Authority maintains that increased profitability must be matched with tax responsibility.
GRA officials argue that allowing businesses to benefit from rising festive and tourism-driven demand without fulfilling their tax obligations undermines domestic revenue efforts, especially at a time of fiscal pressure. The enforcement drive is aimed at ensuring that higher seasonal profits are matched with timely tax compliance, rather than prolonged default.
December continues to anchor consumption and entertainment activity, while tourism recovery is expected to extend into 2025. The GRA’s enforcement efforts point to a policy stance that periods of economic expansion must deliver corresponding tax revenues.
