Ghana’s tax system is unfairly burdening salaried workers while letting high-net-worth individuals off the hook, according to economist and professor of Finance at the University of Ghana Business School , Prof. Godfred Bokpin.
He is calling on the government to develop a clear policy that ensures the wealthy contribute more, reducing the strain on ordinary Ghanaians and businesses.
Speaking on Joy FM’s Super Morning Show, Prof. Bokpin explained that the country’s tax structure focuses too much on personal income tax, even though the wealthiest Ghanaians don’t primarily earn from salaries.
“We are taxing income in terms of personal income tax, but high-net-worth individuals don’t actually live on salary or wages,” he noted.
In his view, many wealthy individuals do not rely on wages but rather earn their income through sources that often attract lower taxes compared to salaries. He believes this creates a gap between high-net-worth individuals and the average worker, as formal sector employees and businesses continue to bear the heavier tax burden.
Prof. Bokpin emphasized that without a well-defined policy and an effective implementation strategy, the tax system would continue to place an unfair burden on salaried workers while allowing the wealthy to contribute less than they should.
While acknowledging the efforts of the Ghana Revenue Authority’s (GRA) High Net Worth Office in recent years, he pointed out that more must be done to ensure that affluent individuals pay their fair share of taxes.
