By Emmanuel Amoah
Accra, July 23, 2024 – A recent revelation by Deputy Minister of Finance, Dr. Alex Ampaabeng, at the launch of the 8th Ghana Economic Update by the World Bank, has shed light on Ghana’s alarming tax compliance rate.
According to Dr. Ampaabeng, only 1.5 million out of 7.9 million registered taxpayers fulfill their tax obligations, resulting in significant revenue losses for the country.
The government plans to reduce the human interface in tax collection and enhance digital collection processes to address this issue. This move aims to minimize tax infractions and increase revenue.
Ghana’s tax collection has consistently lagged behind its peers, with an average collection of 13.2% of GDP between 2017 and 2021. This falls short of the Sub-Saharan Africa average and the country’s estimated tax capacity of 21.2% of GDP.
The staggering 6.4 million registered taxpayers who fail to honor their obligations pose significant challenges to Ghana’s revenue generation and economic development.
The low tax compliance rate threatens to undermine economic growth, depriving the government of essential funds for public services and infrastructure projects.
The government must take decisive action to address the tax compliance crisis, leveraging digital solutions and improving tax education to increase revenue and drive economic growth.
