The head of Green Tax Youth Africa (GTYA), Mr. Nii Addo, has praised the Ministry of Finance and the Ghana Revenue Authority (GRA) for their courageous and well-planned initiatives in tackling Ghana's persistent revenue collection challenge within the informal sector.
If implemented effectively and with adequate backing, the new policies have the potential to significantly enhance Ghana's financial capacity and direction of growth, given that more than 80% of the nation's revenue prospects are linked to this area.
Mr. Nii Addo characterized the action as "well-timed and forward-thinking," highlighting that it demonstrates a robust governmental reaction to persistent demands from interested parties to introduce innovations and expand the tax base for more fair and inclusive domestic resource generation, which should ultimately reduce the pressure on the formal sector.
This policy approach represents a positive move forward. The informal sector continues to be the foundation of Ghana's economy and its potential for generating revenue. Enhancing tax adherence within this area can greatly reduce the budget shortfall and promote equitable growth, said Mr. Addo.
Nevertheless, GTYA calls on the government to support these initiatives with essential macroeconomic reforms aimed at protecting low-income individuals, especially young people and women, from increasing inequality. Mr. Addo highlighted recent increases in utility bills and rising fuel prices, which place a heavier burden on essential consumers and weaken household stability.
Key Economic Strategy Suggestions from GTYA- GTYA urges the Public Utilities Regulatory Commission (PURC) and the government to update the quarterly electricity increase system, which has widened the inequality gap and impacted essential consumers, particularly in low-income areas.
- Increasing fuel costs, resulting from high taxes and charges, have widespread impacts on transportation, goods, and service provision. GTYA suggests limiting all fuel-related taxes and charges to GH¢1.50 at the pump, as currently being done, to offer financial support and enable citizens to benefit from Ghana's oil resources.
- GTYA urges the government to reclaim every cedi that was improperly obtained by individuals with political influence and public officials, whose unaccounted wealth implies the improper use of state assets. These resources should be channeled towards initiatives focused on public development.
- Ghana suffers significant financial losses each year due to corporate tax avoidance, manipulation of transfer pricing, and other illegal capital movements. The government needs to enhance regulatory and tax management frameworks, improve transparency regarding beneficial ownership, and enforce severe consequences for multinational tax exploitation.
- GTYA cautions that too many tax breaks and exemptions, particularly for foreign companies, are depleting government funds. These measures should be reviewed and connected to specific socio-economic performance metrics, such as job generation, knowledge sharing, and involvement of local resources.
Ghana holds the position of the 12th most costly nation in Africa, meaning the government needs to act quickly
respond to the high cost of utilities, rent, food, and transportation, which continue to be essential but expensive
unaffordable for many.
- GTYA supports progressive tax measures aimed at wealthy individuals, such as taxes on private jet users, those traveling in first class, and cargo shipping companies, in line with suggestions from the Financing for Development Conference held in Seville, Spain, on June 30th, 2025.
- These "environmental levies" can support climate resilience and technological advancement efforts while promoting financial fairness.
Call to Action
Mr. Addo ended by calling on civil society organizations, academic institutions, private sector leaders, and international development partners to assist the government in creating a fairer and stronger financial system, based on fairness, effectiveness, and long-term viability.
"The real test of effective economic policy lies in its effect on the everyday lives of regular people. If citizens don't experience relief within six months of being put into action, we need to go back and adjust our approaches. Ghana needs to meet this challenge," Mr. Addo said.
Provided by SyndiGate Media Inc. (Syndigate.info).