Asantehene Otumfuo Osei Tutu II has urged the Ghana Revenue Authority (GRA) to broaden its tax collection efforts beyond conventional taxpayers. This significant call was made during a courtesy visit by the Board of Directors, Commissioners, and senior members of the GRA to the Manhyia Palace in Kumasi on Friday, August 7, 2026.
The Asantehene's statement underscores a critical need for Ghana to enhance its domestic revenue mobilization. Relying heavily on a limited pool of taxpayers can strain economic growth and hinder the government's ability to fund essential services and development projects. Expanding the tax net would ensure a more equitable distribution of the tax burden across various sectors of the economy.
This directive aligns with Ghana's ongoing efforts to improve its fiscal position and reduce reliance on external borrowing. The nation has consistently faced challenges in meeting its revenue targets, often leading to budget deficits. For instance, in 2025, Ghana's tax-to-GDP ratio stood at approximately 13%, significantly lower than the average of 18% for sub-Saharan Africa. Broadening the tax base is crucial for achieving fiscal sustainability and supporting the government's ambitious development agenda.
Otumfuo Osei Tutu II emphasized the importance of innovative approaches to tax collection. He suggested that the GRA should identify and engage with emerging economic sectors and informal businesses that currently contribute minimally to the national tax revenue. This strategy would not only increase state coffers but also foster a sense of shared responsibility among all economic actors.
The implications of this call are substantial for Ghana's economic future. A successful expansion of the tax base could lead to increased government spending on infrastructure, education, and healthcare, thereby stimulating economic growth. It would also enhance Ghana's creditworthiness on international markets, potentially lowering borrowing costs for future development projects. Decision-makers at the GRA will now need to develop and implement comprehensive strategies to identify and integrate these new taxpayer segments effectively.
The GRA's response to the Asantehene's advice will be closely watched by economists and the public. Successful implementation will require robust public education campaigns, simplified tax compliance procedures, and effective enforcement mechanisms. Failure to broaden the tax base could perpetuate Ghana's fiscal vulnerabilities and limit its capacity for sustained economic development. The focus will be on how the GRA translates this royal counsel into tangible policy changes and improved revenue outcomes in the coming years.