International development organisation Oxfam Ghana has called on government to strengthen domestic tax mobilisation and compliance systems to reduce the nation’s dependence on external borrowing for development financing.
At a workshop held in Accra to present findings from the Fair Tax Monitor Report, Dr. Isaac Nwankwo, Research Consultant for the project, said Ghana has enormous untapped tax potential that could meet most of its funding needs if managed efficiently and transparently.
He said a combination of effective tax education, enforcement of compliance, and visible use of tax revenues for the public good would go a long way in improving collection and ensuring equity in the country’s tax system.
“If we are able to organise ourselves properly, Ghana can fund its own development without waiting for loans or donor support,”
Dr. Nwankwo said. “When external support fails, we must rely on what we generate here to pay for our priorities.”
He noted that ensuring fairness and affordability in tax administration would encourage voluntary compliance, while continuous education would help both individuals and businesses appreciate the importance of paying taxes.
Dr. Nwankwo expressed concern about the significant losses Ghana incurs through illicit financial flows, tax evasion, and weak oversight in international transactions.
Such losses, he said, deprive the state of critical funds for social services and infrastructure, forcing government to resort to costly borrowing.
He urged policymakers to replicate recent anti-smuggling efforts in the gold sector across other extractive industries to close loopholes and increase domestic revenue.
“The establishment of the Gold Board is a good start. It provides a structured system to ensure that gold revenues are properly recorded and taxed,” he added. “When money circulates through the formal system, we can track it and use it for national development.”
According to Oxfam, Ghana’s long-term growth depends on building a self-sustaining tax culture anchored on trust and accountability. The organisation urged the Ghana Revenue Authority (GRA) to maintain recent momentum in revenue growth by modernising operations, expanding the tax net, and setting clear performance targets.
Dr. Nwankwo said empowering the GRA with digital tools and adequate resources would enhance efficiency and transparency in tax collection, while public engagement campaigns would help demystify the tax system.
“Let’s continue empowering our revenue institutions and educating taxpayers about their civic duties. A well-informed public is more likely to comply voluntarily, which will boost our overall revenue,” he said.
Oxfam’s Fair Tax Monitor Report assesses fairness, transparency, and progressivity in national tax systems, providing policy recommendations to make taxation more equitable and development-oriented.
