Tax reforms must be ‘smart and achievable – AGI president demands of next administration

Tax reforms are high on the wish list of the Association of Ghana Industries (AGI) as the country prepares to elect a new president on December 7.

In an interview, Dr Humphrey Ayim Darke stressed the need for practical, comprehensive reforms to simplify Ghana’s tax system and ease the burden on businesses.

“One of the key promises from all the candidates is tax reform,” he noted.

“But our prayer is that these reforms should be practicable and achievable. They should be smart, as we say in Economics and Management. They should take cognisance of the macro gains and be aligned with the country’s fiscal realities.”

Dr Darke lamented the complexity of Ghana’s tax system, which he described as burdensome and counterproductive for businesses.

“We’ve talked about this for years,” he said.

“The VAT, the levies, the nuisance taxes—these are stifling businesses. We need a system that supports growth rather than stifles it.”

He also highlighted the delicate balance between reforming taxes and maintaining government revenue.

“As we look at these reforms, we must remember that domestic revenue will be affected. I presume the government has simulated the options available.

“But whatever they do, the tax system must be easier to navigate and more supportive of industrial growth.”

Dr Darke concluded with a call for innovation in managing Ghana’s economic challenges.

“Tax reforms alone are not enough,” he said.

“We need initiatives around exchange rate management, tourism, and remittances. These can provide short-term revenue boosts and stabilise the economy.”