It is emerging that the failure of parliament to approve the 2025 Expenditure in Advance of Appropriation could potentially create a legal loophole to enable Ghanaians to refuse to pay taxes.
Economist at the University of Ghanan Business School, Prof. Lord Mensah says the economy is at risk of huge revenue shortfall since the revenue agencies cannot mobilize taxes in the absence of the 2025 first Quarter Budget.
Prof. Lord Mensah reveals it is illegal for the Ghana Revenue Authority (GRA) to mobilize taxes in the absence of a budget. He argues that the situation can embolden citizens to refuse to pay taxes without facing repercussions citing the constitutional requirement for budget approval as a prerequisite for lawful revenue collection.
“And even in terms of revenue, mobilisation. I mean, any attempt that government will go about mobilising revenue would tend to be kind of illegality. Because there should be kind of approval of budget in parliament before government can go ahead to mobilise revenue to meet up the necessary expenditure that’s supposed to be,’ Prof. Lord Mensah indicated.
He added that, “So people on the street can decide not to pay for their taxes and all those and nothing can happen. So for me, I think what they are doing, they shouldn’t think it’s just happening in the chamber…. But they should understand that this should go beyond just parliament. It’s the Ghanaian economy we are looking at.”
This development comes at a critical time when government revenue is already under pressure.
Already other analysts and economists have expressed the fear that a prolonged delay in budget approval could undermine public confidence in governance and disrupt essential services that rely on taxpayer funds.
Meanwhile, the Minority in Parliament has given some assurance to Ghanaians that despite the failure to approve the 2025 Q1 Budget, the Vice President may present it after January 7 to ensure government services continue.
