Weak Tax compliance costs Ghana Billions — GRA
28th January 2026
Ghana continues to lose significant revenue due to low tax compliance, with the Ghana Revenue Authority (GRA) warning that closing existing tax gaps could drastically reduce the country’s dependence on IMF support and external borrowing.
Speaking at an Executive Business Dialogue organised by Markers & Partners, the Acting Commissioner of the Domestic Tax Revenue Division, Dr. Martin Kobil Yamborigya, said Ghana currently collects only about a third of its potential income tax revenue—a situation he described as deeply troubling for an economy seeking long-term fiscal stability.
“It is quite worrying that in Ghana, the income tax gap stands at 67 per cent, meaning we are able to collect only 33 per cent of what is due,” Dr. Yamborigya said.
He noted that the challenge is equally severe in the Value Added Tax (VAT) system, where a compliance gap of 61 per cent means just 39 per cent of potential VAT revenue is realised.
“That effectively means we are collecting only 39 per cent of VAT revenues,” he added.
Dr. Yamborigya stressed that meaningful tax reforms must prioritise expanding the tax base, closing compliance gaps, and minimising revenue leakages, while ensuring that the tax system remains transparent, efficient, and predictable for businesses.
“In an evolving economy such as ours, effective tax reforms are those that broaden the tax base, close compliance gaps, and reduce leakages, while maintaining efficiency and predictability for taxpayers,” he explained.
According to him, improved tax compliance could significantly reshape Ghana’s fiscal position and reduce the need for external financial support.
“If we are able to close the tax gap, there will be no need to turn to the IMF or rely heavily on borrowing,” he said, pointing to the visible economic activities taking place across the country.
“People are earning income every day, but the critical question is whether those incomes are being taxed,” he noted.
Dr. Yamborigya reiterated that the overarching objective of ongoing tax reforms is to bring more individuals and businesses into the tax net to support sustainable economic growth and fiscal resilience.