Contrary to claims that Ghanaians do not pay enough taxes, Ghana’s economy is in fact heavily taxed, an analysis by Deloitte has revealed.
The clarion call from many analysts and economists is for Ghana to increase its tax revenue since tax revenue performance has been very low in the economy.
But this low tax performance narrative has been challenged by Deloitte at its 2025 Economic Dialogue on Ghana’s Budget Statement and Economic Policy.
An analysis by the accounting and auditing firm reveals that the country exceeded all its tax revenue targets in 2024. The document cited by The High Street Journal reveals that total revenue and grants exceeded the target by 5%, achieving GHS 186.6 billion instead of the projected GHS 177.2 billion.
This was largely driven by domestic revenue, which grew 6% above target, and tax revenue, which exceeded expectations by 4%, reaching GHS 141.0 billion. Non-tax revenue and oil and gas receipts also performed strongly, exceeding targets by 16% and 32%, respectively. However, other revenue sources underperformed, with a 21% shortfall, while grants saw the most significant decline, falling by 45% below the projected amount.
Presenting these findings, Partner, Financial Advisory at Deloitte, Yaw Appiah Lartey revealed that compared to Nigeria, Ghana’s over 80% tax revenue is far ahead of Nigeria.
This, Yaw Lartey indicates that despite the widespread assertion, the economy is heavily taxed and businesses are taking a major hit paying huge sums of money as taxes to the government.
“In 2024, in all our tax revenue targets, we exceeded our targets. In terms of our tax performance, we did very well. For other revenue and grants, we underperformed. So what it means for business is that it is an economy that is heavily taxed. Nigeria is just about 60% or less than 50% of tax revenue. Other revenue sources are there and they are putting a lot of effort into that. Our tax revenue target is 81%. That is a heavily taxed economy,” he remarked.
Aside from the good performance in 2024, the government is targeting about 81% of tax revenue in 2025.
But Deloitte says although this high tax may come as good news to the government, there is an associated risk. Yaw Lartey warns that such a high reliance on taxation poses significant risks to the country’s economic stability.
Experts warn that this situation could potentially create pressure on businesses, discourage investment, and limit economic growth. High taxation increases operational costs, making it difficult for businesses to expand and create jobs. In addition, excessive taxation may push businesses into the informal sector to evade taxes, reducing overall compliance. Foreign investors may be deterred by an economy that depends too heavily on taxation instead of creating diverse revenue streams.
Deloitte’s key recommendation is clear. Ghana must diversify its revenue base to reduce its heavy dependence on taxation. While the country has demonstrated strong domestic revenue generation, excessive taxation alone is not a sustainable strategy.
“We should try and diversify our revenue sources because relying heavily on tax is actually a risk. On the other hand, we are generating domestic revenue but if we can diversify our revenue source and reduce our reliance on taxes it will help,” Yaw Lartey emphasized.
This new revelation by Deloitte is a call on the government to take bold steps to ease taxation and explore alternative revenue sources.
