Ghana Faces Inadequate Tax Revenue: IMF

June 29, 2025

(3 Minutes Read)

Ghana has sought assistance from the IMF more than seven times, with the most recent intervention initiated to stabilise the economy following a series of external shocks and internal mismanagement.

Ghana’s inability to effectively mobilise domestic revenue has long been identified as a critical weakness in its economic framework. The International Monetary Fund (IMF), which is currently supporting Ghana under a bailout programme, has cited inadequate tax collection—especially from the informal sector—as a major contributor to the country’s fiscal imbalances.

Ghana has sought assistance from the IMF more than seven times, with the most recent intervention initiated to stabilize the economy following a series of external shocks and internal mismanagement.

As part of the ongoing fiscal reforms, the GRA has engaged stakeholders including the Ghana Hotels Association, the Ghana Chamber of Mines, tax consultants, and major corporate taxpayers to gather practical recommendations for reshaping the VAT system.

Commissioner for Domestic Tax Revenue, Apenteng Gyamrah, who led the stakeholder engagements, emphasized that all proposals submitted will be reviewed and consolidated to create a more inclusive and efficient VAT framework. “We want a system that reflects grassroots input and is tailored to Ghana’s unique economic environment,” he said.

The government is under increasing pressure to generate sufficient revenue to meet its developmental targets and finance major political commitments ahead of the 2028 general elections. While macroeconomic indicators have shown modest improvement in the first half of 2025—such as inflation easing and a stable cedi—analysts warn that the progress could be undermined if the government engages in excessive or unproductive spending.