GRA Steps Up Efforts to Boost Tax Collection and Compliance with GH¢200 Billion Target for 2025

The Ghana Revenue Authority (GRA) is intensifying its campaign to improve tax collection and compliance as part of the government’s broader economic reset agenda. Acting Commissioner-General Anthony Kwasi Sarpong outlined a comprehensive strategy focused on expanding the tax base, achieving an ambitious GH¢200 billion revenue target for 2025, and implementing business-friendly reforms to encourage voluntary compliance.

In summary:

• GRA targets GH¢200 billion tax revenue in 2025, up from GH¢153 billion in 2024.
• Medium-term goal is GH¢360 billion by 2028, raising tax-to-GDP ratio to 17–18%.
• Strategy focuses on expanding tax base using technology and data integration.
• Collaborations with Registrar of Companies and SSNIT to identify non-compliant taxpayers.
• Business-friendly reforms and digitization aim to encourage voluntary compliance.
• Emphasis on building taxpayer trust, integrity, and professionalism to support fiscal stability.

Expanding the Tax Net through Technology and Data Integration

A key pillar of GRA’s approach is broadening the tax net to include sectors and individuals previously outside the formal tax system. This effort leverages data analytics and integration with other institutions to identify taxpayers and match their economic activities with tax obligations. Special attention is being given to the informal sector by monitoring mobile money transactions and other data points.

Institutional Collaboration to Enhance Compliance

GRA is collaborating closely with institutions such as the Registrar of Companies and the Social Security and National Insurance Trust (SSNIT). By connecting databases through Application Programming Interfaces (APIs), GRA aims to identify non-compliant businesses and individuals. For example, while many people file social security contributions tied to retirement benefits, they may neglect tax payments, making this integration vital for compliance enforcement.

Ambitious Revenue Targets and Medium-Term Goals

For 2025, GRA targets at least GH¢200 billion in tax revenue, a substantial increase from the GH¢153 billion collected in 2024. This is part of a medium-term plan to raise domestic revenue and improve Ghana’s tax-to-GDP ratio. By 2028, the authority aims to collect a minimum of GH¢360 billion, under the ‘360 by 28’ campaign, which would raise the tax-to-GDP ratio from 13.8% to between 17% and 18%.

Business-Friendly Reforms to Foster Voluntary Compliance

Recognizing the challenges businesses face, GRA is streamlining tax processes and offering support to encourage compliance without hindering growth. With many businesses operating online and transacting digitally, GRA is digitizing tax administration to reach more taxpayers, including those outside the traditional tax net.

Building Trust and Professionalism

Commissioner-General Sarpong emphasized that taxpayers are customers and that building public trust, integrity, and professionalism within the tax system is crucial. He stated, “When that happens, we can mobilise the needed revenue to support the nation’s reset agenda.”

Government Support and Fiscal Context

The GRA’s efforts align with government priorities to increase revenue collection by at least 0.6 percentage points of GDP annually, aiming for a primary fiscal surplus of 1.5% of GDP by 2025 and reducing the external debt service-to-revenue ratio from 28% in 2022 to 18% by 2028. Recent reforms include tax rationalization measures, digitalization of tax systems, and enhanced collaboration with development partners to strengthen domestic revenue mobilisation.