Deloitte has commended the Ghanaian government for its encouraging domestic revenue mobilization performance, as detailed in the Mid-Year Budget Review. The professional services firm noted that non-oil tax revenue increased significantly, rising from 12.6% of Gross Domestic Product (GDP) in 2024 to 13.1% of GDP in 2025. This positive development occurred despite the abolition of several taxes in 2025.
This growth in revenue is primarily driven by improved compliance, enhanced administrative efficiency, and technology-enabled tax collection methods. Deloitte highlighted that this approach is more sustainable than simply increasing tax rates. Such a strategy is considered beneficial for both businesses and investors, fostering a more predictable economic environment.
Ghana's economic narrative has frequently focused on the challenge of domestic revenue generation. The country has historically struggled to meet its revenue targets, often relying on external financing. This recent performance indicates a shift towards strengthening internal fiscal capabilities, which is crucial for long-term economic stability and reducing reliance on debt. The increase in non-oil tax revenue, even with tax cuts, suggests a more robust and efficient tax system is taking root.
Daniel Owusu, Country Managing Partner at Deloitte Ghana, stated that "Revenue growth appears to be increasingly driven by improved compliance, administrative efficiency and technology-enabled tax collection rather than higher tax rates. This is a positive development for businesses and investors." This statement underscores the importance of systemic reforms over ad-hoc tax adjustments.
Looking ahead, the government is urged to continue pursuing reforms that broaden the tax base and improve compliance. Closing leakages within the tax system remains a critical area for focus. Sustainable increases in Ghana's tax-to-GDP ratio will be achieved more effectively through these administrative reforms. This approach will support economic growth without burdening businesses with higher tax rates, which could stifle investment and competitiveness. Decision-makers and markets will closely watch the government's continued commitment to these reforms.
The emphasis on administrative efficiency aligns with calls from the Ghanaian business community. They have consistently argued that revenue mobilization should prioritize generating durable domestic revenue without undermining investment or economic growth. This strategy is vital for creating a stable and attractive environment for both local and foreign direct investment. The sustained improvement in tax collection methods could also positively impact Ghana's credit ratings and its ability to access international capital markets on favorable terms.
Furthermore, the success in increasing non-oil tax revenue despite tax abolitions demonstrates the potential of a well-executed tax administration strategy. This could serve as a blueprint for other sectors and future fiscal policies. The government's ability to maintain this momentum will be key to achieving its broader economic development goals and ensuring fiscal discipline in the coming years.