Technical Advisor to the Commissioner-General of the Ghana Revenue Authority (GRA), Ms. Elsie Appau-Klu, has underscored the need for improved tax compliance and administrative efficiency as the most sustainable pathway to boosting Ghana’s revenue, following the recent abolition of the E-Levy, COVID-19 levy, and betting tax.
Speaking at a policy forum organised by the Centre for Policy Scrutiny (CPS) on April 7, 2026, Ms. Appau-Klu noted that while the removal of the three taxes initially raised concerns about revenue losses, early data suggests that strengthening existing systems could offset the gap without imposing additional tax burdens on citizens.
“It is true that the abolishment of these taxes puts pressure on revenue mobilisation,” she said. “However, we also see it as an investment into the future—one that reduces the burden on individuals and encourages broader participation in the tax system.”
She revealed that the GRA recorded a strong performance in the first quarter of 2026, collecting approximately GH¢33.7 billion in tax revenue—representing a 20% increase compared to the same period in 2025. According to her, this growth was achieved despite the removal of the three taxes, pointing to improved compliance and enhanced enforcement measures.
The GRA advisor attributed the gains to a combination of targeted audits, digital transformation initiatives, and intensified taxpayer engagement. She emphasized that Ghana’s primary challenge is not necessarily the absence of new taxes but the low compliance rates within the existing tax framework.
“Currently, only about 19% of the taxpayer population pays income tax, and less than 30% complies with VAT obligations,” she disclosed. “If we are able to improve compliance significantly, we may not need to introduce additional taxes.”
Ms. Appau-Klu highlighted ongoing efforts by the Authority to modernize tax administration and make compliance more accessible. Central to these efforts is the rollout of the Integrated Tax Application and Preparation System (ITAS), which allows taxpayers to register, file returns, and access tax information digitally.
“Today, from the comfort of your home, you can dial *880# to register as a taxpayer and begin meeting your obligations,” she explained. “We are making tax payment more convenient and accessible, especially for small and medium-sized enterprises.”
She added that the GRA has also introduced a Modified Taxation Scheme targeted at the informal sector, which accounts for a significant portion of Ghana’s economy but remains largely untaxed. The scheme simplifies tax obligations and reduces compliance costs for informal businesses.
“Our approach is now more customer-centric,” she said. “We have established a 24-hour response system, including WhatsApp support, to assist taxpayers and address their concerns promptly.”
Despite these improvements, Ms. Appau-Klu stressed that achieving sustainable revenue growth requires a cultural shift in how citizens perceive taxation. She called for greater public awareness and civic responsibility, linking tax compliance to accountability and national development.
“Accountability comes with responsibility,” she noted. “When citizens contribute through taxes, they are better positioned to demand transparency and proper use of public funds.”
She also pointed out that Ghana’s tax-to-GDP ratio remains around 16%, significantly below the 25% benchmark for middle-income countries. Bridging this gap, she said, would require both administrative reforms and increased voluntary compliance.
Analysts at the forum noted that Ghana’s fiscal pressures remain significant, with rising debt servicing costs and increasing demand for infrastructure and social spending. In this context, the GRA’s strategy of broadening the tax base—rather than increasing tax rates—was widely viewed as a pragmatic approach.
Ms. Appau-Klu urged collective national effort in improving compliance, emphasizing that the success of Ghana’s revenue mobilisation agenda depends on both institutional reforms and citizen participation.
