Accra: Ghana has the potential to generate sufficient tax revenue domestically, through stronger compliance mechanisms and public education on tax obligations, to meet its development needs without excessive borrowing, says Oxfam Ghana.
According to Ghana News Agency, this requires the government to enhance the value of taxes paid by individuals and businesses, curb illicit financial flows, strengthen enforcement, and continue public education. Dr. Isaac Nwankwo, Research Consultant for the Oxfam Fair Tax Monitor Project, emphasized the necessity for mechanisms that make taxation affordable and easily paid during the Fair Tax Monitor Report Workshop in Accra. He highlighted the importance of self-reliance, urging the nation to harness its tax revenue potential.
Dr. Nwankwo pointed out the need for an environment that allows all potential taxpayers to fulfill their obligations without obstacles. He expressed concern over revenue losses due to illicit financial flows and international tax arrangements, which often compel the government to borrow funds for essential services and discourage honest taxpayers.
He advocated for the empowerment of the Ghana Revenue Authority (GRA) with necessary resources, clear targets, and sustained taxpayer education to expand the tax base and ensure compliance. Dr. Nwankwo noted the significant growth in tax revenue by GRA in 2024 and stressed the importance of continued support and education for potential taxpayers.
The Tax Consultant also addressed the financial losses attributed to certain international arrangements related to money transfers, urging the government to extend efforts similar to those in the gold sector to other critical areas of the economy. He praised the establishment of the Gold Board as a positive step towards improving tax compliance in the mining sector and tackling gold smuggling, which continues to cause notable revenue losses.
