Accra, Ghana – February 27, 2025 – Sweet Melodies FM – During his State of the Nation Address today, President John Dramani Mahama announced sweeping tax reforms aimed at improving revenue collection and expanding Ghana’s tax base. The President addressed the nation on the pressing need to enhance fiscal discipline and ensure the country has the necessary resources to fund essential public services and infrastructure projects.
Government to Tackle Tax Evasion and Expand Base
With Ghana facing a public debt of GHS 721 billion and a strained economy, President Mahama outlined the government’s commitment to increasing revenue without burdening ordinary Ghanaians. He acknowledged that a key challenge to fiscal sustainability has been the country’s low tax compliance and tax evasion.
“We will eliminate loopholes and improve enforcement to ensure that everyone contributes fairly to the nation’s development,” Mahama stated.
The government’s tax reforms will focus on increasing the efficiency of tax collection systems, utilizing digital tools, and targeting previously untapped sectors of the economy.
Introducing Digital Solutions to Tax Collection
A core aspect of the proposed reforms will be the digitalization of tax collection systems. President Mahama revealed that the government will implement new online platforms and mobile tax services, aimed at making tax payments more convenient, transparent, and accessible for businesses and individuals alike.
“The future of tax collection in Ghana lies in digital solutions. We will harness technology to make the system more efficient and less prone to fraud,” Mahama said.
Strengthening Taxpayer Education and Compliance
Alongside digitalization efforts, the government will invest in taxpayer education programs to inform citizens and businesses about the importance of tax contributions and the benefits of a compliant system.
“These reforms will not work without the full support and cooperation of the people. We need Ghanaians to understand the need for taxes to fund critical services such as education, healthcare, and infrastructure,” the President emphasized.
Targeting the Informal Sector
Another significant element of the tax reform plan is bringing more businesses in the informal sector into the formal tax system. Mahama acknowledged that the informal sector accounts for a large portion of Ghana’s economic activity but contributes only a small share of tax revenues.
The government will work with local businesses to formalize operations and ensure they are registered for tax purposes.
“We will ensure that informal businesses are supported as they transition to the formal sector, and we will provide incentives to encourage voluntary registration,” Mahama stated.
Balanced Approach to Taxation
While focusing on enhancing revenue, Mahama reassured Ghanaians that the government’s tax policies would not overburden the public. He emphasized that the reforms would aim for fairness and equity, ensuring that the tax system works for all Ghanaians, particularly the most vulnerable.
“We are not increasing taxes on the ordinary citizen. Instead, we are making sure that the system is more efficient and that those who can afford to contribute more to the nation do so,” Mahama said.
Strengthening Tax Agencies
As part of the broader reforms, President Mahama also announced that the Revenue Authority and other tax-related agencies would be strengthened to enhance their capacity to collect taxes effectively. He highlighted the importance of professionalism and integrity within these agencies.
“We will ensure that our tax agencies have the resources and training needed to carry out their duties with integrity,” Mahama emphasized.
A Call for National Support
In his closing remarks, Mahama called on all Ghanaians to support the government’s tax reform efforts. He reminded the public that these measures are essential for securing the country’s future and ensuring that Ghana can fund its own development without relying on external borrowing.
“Together, we can build a stronger, more self-reliant economy. Let us all contribute to nation-building,” he said.
Sweet Melodies FM will continue to follow the developments of these reforms and keep our listeners informed as the government moves forward with its tax collection improvements.
