Only about 1.5m taxpayers out of 7.9m honour their obligations – Dep Finance Minister

admin July 23, 2024

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At the launch of the 8th Ghana Economic Update by the World Bank, Deputy Finance Minister Dr. Alex Ampaabeng disclosed that only about 1.5 million out of 7.9 million registered taxpayers in Ghana fulfill their tax obligations.

Dr. Ampaabeng noted that the Ministry of Finance and the Ghana Revenue Authority (GRA) are actively working to clean up the tax database to enhance revenue collection.

He emphasized the government’s commitment to improving the fiscal environment by reducing human interaction in tax collection and increasing digital processes.

“Reducing human interface is key to growing our [Ghana’s] tax revenue. The Ministry of Finance is working with the GRA to minimize tax infractions,” he stated.

Ghana’s tax collection has lagged behind that of its peers, averaging 13.2% of GDP between 2017 and 2021, which is below the Sub-Saharan Africa average and significantly lower than the country’s estimated tax capacity of 21.2% of GDP.

The World Bank report highlights inefficiencies in Ghana’s tax policy framework and compliance mechanisms, suggesting that rationalizing large tax expenditures could address these issues.

This would involve balancing the reduction of revenue losses with potential social impacts.

The World Bank asserts that addressing these challenges is crucial for ensuring macroeconomic stability and generating resources for sustainable growth and poverty reduction in Ghana.

By Daakyehene Nana Yaw Asante