Ghana continues to forfeit substantial revenue due to weak tax compliance, with the Ghana Revenue Authority (GRA) warning that closing existing tax gaps could significantly reduce the country’s reliance on IMF support and external borrowing.
Speaking at an Executive Business Dialogue organised by Markers & Partners, Acting Commissioner of the Domestic Tax Revenue Division, Dr. Martin Kobil Yamborigya, said Ghana currently collects barely a third of owed income taxes — a shortfall he described as deeply worrying for an economy striving for fiscal stability.
“It’s a very sad story to tell that in Ghana, our tax gap as far as income tax is concerned is 67%. That means we are collecting only 33%,” Dr. Yamborigya revealed.
The situation is equally alarming in the Value Added Tax (VAT) space, where the compliance gap stands at 61%, meaning only 39% of potential VAT revenue is collected.
“That means we are collecting only 39%,” he stressed.
Dr. Yamborigya emphasised that effective tax reforms must focus on broadening the tax base, closing compliance gaps, and reducing revenue leakages, while maintaining a predictable and transparent system for businesses.
“In an evolving economic environment like ours, effective tax reforms seek to broaden the tax base, close compliance gaps and reduce leakages while ensuring that the tax system remains efficient, transparent and predictable for businesses,” he said.
He argued that improved compliance could fundamentally transform Ghana’s fiscal outlook.
“I believe that if we can close the tax gap, we will not need to go to the IMF, we will not need to go and borrow money from anywhere,” he noted, pointing to visible income-generating activities across the country.
“These are incomes that people earn, but the question is, are they paying taxes?” he asked.
Dr. Yamborigya reiterated that the core goal of ongoing tax reforms is to bring more individuals and businesses into the tax net to support sustainable economic growth.
