The Ghana Revenue Authority (GRA) reports that 6 out of every 10 businesses in Ghana are not complying with their tax obligations. This significant non-compliance creates an unfair competitive environment for businesses that diligently meet their tax responsibilities.
This revelation came from Anthony Kwasi Sarpong, the Commissioner-General of the GRA. He spoke at the AGI 2026 Industrial and Exhibition Summit, highlighting the urgent need for stronger tax compliance. Mr. Sarpong emphasized that businesses avoiding taxes gain an unfair advantage, potentially harming efforts to build a competitive and sustainable private sector. This situation undermines the integrity of the market and disadvantages law-abiding companies.
Ghana's economy relies heavily on tax revenue to fund public services and infrastructure projects. Persistent tax non-compliance, particularly among a large segment of businesses, poses a significant challenge to the nation's fiscal stability. This issue contributes to the informal sector's dominance and can strain government budgets, impacting development goals. Previous data has often pointed to a narrow tax base, making broad compliance crucial for economic resilience.
“For every 10 businesses in Ghana, about six are not complying,” Mr. Sarpong stated clearly. He added, “For those of you who are complying, you are doing your best. For those who are not complying, they are then becoming… unfair advantage.” The GRA's objective is not merely to collect more taxes. It seeks to create an environment where compliant businesses are not disadvantaged by those who evade their duties.
The GRA is intensifying its efforts to improve tax compliance and simplify the process for businesses. A key strategy involves broadening the tax base, making tax rules more predictable, and using digitisation to strengthen enforcement. The Authority plans to implement the Fiscal and Accounting Devices Act in the last quarter of 2026. This act will mandate the use of government-approved devices by businesses for transactions, specifically targeting improved Value Added Tax (VAT) compliance.
Furthermore, the GRA is rolling out its Integrated Tax Administration System. Mr. Sarpong described this system as a “game-changer” designed to reduce human intervention and make tax administration more efficient. This digital platform will allow taxpayers to engage with the GRA electronically, making it easier for businesses to voluntarily comply with their tax obligations. The move towards digitisation aims to enhance transparency and reduce opportunities for evasion.
The implications of improved tax compliance are far-reaching for Ghana's economy. Increased tax revenue will provide the government with more resources for critical investments in education, healthcare, and infrastructure. It will also foster a more equitable business landscape, encouraging fair competition and growth among all enterprises. Businesses and investors will closely watch the effectiveness of these new GRA initiatives. The success of these measures is vital for Ghana's economic development and its ability to attract foreign investment. The GRA believes its success is directly linked to the success of Ghanaian industries.