In Ghana, a mere 1.5 million out of the 7.9 million registered taxpayers are currently meeting their tax obligations, according to Deputy Minister of Finance Dr. Alex Ampaabeng. This revelation came during the launch of the 8th Ghana Economic Update by the World Bank.
Dr. Ampaabeng highlighted ongoing efforts by the Ministry of Finance and the Ghana Revenue Authority (GRA) to update the tax database and enhance revenue collection. He stressed the government’s commitment to improving the fiscal environment by reducing human involvement in tax collection and promoting digital methods.
“Reducing human interaction is crucial for increasing Ghana’s tax revenue. The Ministry of Finance is collaborating with the GRA to address numerous tax infractions,” Dr. Ampaabeng said.
Ghana’s tax collection has historically lagged behind its peers. Between 2017 and 2021, the country’s average tax collection was 13.2% of Gross Domestic Product (GDP), significantly below the Sub-Saharan Africa average and 8 percentage points short of Ghana’s potential tax capacity of 21.2% of GDP.
The World Bank report highlighted inefficiencies in Ghana’s tax policy and compliance mechanisms, suggesting improvements such as rationalizing large tax expenditures to curb revenue losses while considering social impacts. Addressing these issues is essential for macroeconomic stability, sustainable long-term growth, and poverty reduction efforts.
