Ghana’s tax-to-GDP ratio increased to 14 percent in 2025, up from 12.3 percent in 2024, reflecting government efforts to strengthen domestic revenue collection. This rise represents a 1.7 percentage point improvement in the country's ability to collect taxes relative to its overall economic output.
Deputy Finance Minister Thomas Nyarko Ampem attributed this gain to ongoing tax administration and public financial management reforms. The government is actively working to boost domestic revenue. This is part of its strategy to preserve macroeconomic stability after completing its International Monetary Fund (IMF)-supported economic recovery program. Stronger tax collection is a key part of reducing reliance on borrowing and supporting long-term economic growth across the nation.
This improvement fits into Ghana's broader economic story of fiscal consolidation and debt management. The country has been under pressure to improve domestic resource mobilization. This reduces its vulnerability to external shocks and strengthens its financial independence. Despite the recent increase, Ghana's tax performance still lags behind countries with similar development levels. For example, the sub-Saharan African regional average for tax-to-GDP is roughly 16.1 percent to 17 percent.
Mr. Ampem shared this observation during a visit by a Ghanaian delegation to South Korea. This visit was part of the Ghana Tax Modernisation Project. He noted the need for continued reforms to address revenue leakages, broaden the tax base, and improve efficiency. These efforts are crucial to strengthening voluntary tax compliance among citizens and businesses.
The Ghana Tax Modernisation Project aims to completely overhaul the country’s tax administration system. It receives support from the Korea International Cooperation Agency and the Korea Institute of Public Finance. The project includes technology upgrades, institutional reforms, and capacity-building initiatives. Its outcome will be a Tax Modernisation Master Plan to guide future tax reforms.
This initiative also seeks to build public trust in the tax system. It intends to achieve this through a more technology-driven and citizen-focused approach. The improved trust will help Ghana achieve its wider development goals. The government had previously implemented a Medium-Term Revenue Strategy to address the revenue gap. However, the current figures show more work is needed.
Ghana’s elevated tax-to-GDP ratio remains below the government's own target of 18 percent to 20 percent for 2027. This gap indicates that significant challenges persist in achieving optimal tax collection. Decision-makers will need to continue prioritizing systemic reforms. They must also ensure effective implementation of new technologies and collaborative efforts among public institutions. This sustained focus is essential for Ghana to meet its fiscal targets and ensure long-term economic stability.