During a press briefing on Saturday, April 13, Finance Minister Dr. Mohammed Amin Adam reassured Ghanaians that the government is determined not to burden them with the payment of more taxes.
Instead, the government plans to focus on collecting revenue from those who have been evading taxes or not paying the appropriate amount.
Dr. Amin Adam highlighted the GHS1.8 billion revenue gap that was created by the suspension of the 15 per cent Value Added Tax (VAT) on electricity consumption and the GHS100 annual levy on owners of petrol and diesel vehicles. He emphasized the need to increase revenue in line with the US$3 billion loan-support programme while ensuring that the burden does not fall solely on Ghanaian taxpayers.
The Finance Minister outlined plans to implement revenue generation mechanisms announced in the 2023 and 2024 budgets and to focus on reforms within the tax administration to improve tax collection. Additionally, he mentioned the importance of expenditure rationalization to complement aggressive revenue mobilization efforts.
Ms. Julie Essiam, the Commissioner-General of the Ghana Revenue Authority (GRA), provided further details on alternative revenue mobilization efforts to fill the revenue gap. She highlighted efforts to ensure compliance measures on the foreign income of resident Ghanaians and collaborations with the Organisation for Economic Cooperation and Development (OECD) to generate the necessary revenue.
Dr. Ernest Addison, Governor of the Bank of Ghana (BoG), reiterated the government’s commitment to ensuring that state institutions work together to avoid election expenditure derailing economic progress. He stressed the importance of successfully implementing the IMF-supported programme in an election year to maintain economic stability.
As Ghana awaits the approval of the GHS$360 million third tranche by the IMF Board in June, the country remains committed to the three-year IMF loan-support programme aimed at restoring macroeconomic stability and debt sustainability. With total disbursements amounting to US$1.56 billion, the program is focused on building resilience and laying the foundation for stronger and more inclusive growth in Ghana.
