Ghana's non-oil tax revenue increased by 0.5 percentage points of Gross Domestic Product (GDP) in 2025, rising from 12.6% in 2024 to 13.1%. Finance Minister Dr. Cassiel Ato Forson announced this significant growth, stating that the government collected more taxes in 2025 despite abolishing several levies.
This revenue increase follows the government's tax reform agenda, which focused on modernising Ghana's tax regime. The reforms aimed to restore investor confidence, revive private enterprises, and provide relief to households and businesses. Dr. Forson emphasised that the objective was to increase domestic revenue through better policy, stronger compliance, and more efficient administration, rather than through higher tax rates.
The government abolished several taxes, including the Electronic Transfer Levy (E-Levy), betting tax, COVID-19 Health Recovery Levy, emissions tax, and VAT on motor insurance. These were described as 'nuisance taxes'. The reforms also included Ghana's first comprehensive Value Added Tax (VAT) reforms since 2015, designed to remove distortions, improve efficiency, and strengthen compliance within the tax system.
Dr. Forson, speaking in Parliament during the 2026 Mid-Year Fiscal Policy Review, highlighted the positive impact of these changes. He noted that the reforms improved liquidity for businesses, allowing them to retain more working capital for expansion and job creation. This approach demonstrates the government's commitment to fostering a business-friendly environment while ensuring fiscal stability.
The Finance Minister also announced the introduction of a sliding-scale royalty regime for gold. This measure aims to ensure that Ghanaians receive a fairer share of the economic returns from the country's natural resources. This policy reflects a broader strategy to optimise revenue from key sectors.
Furthermore, the government implemented major customs reforms, deploying artificial intelligence (AI) and other digital technologies. These innovations are designed to strengthen compliance, reduce leakages, and improve revenue mobilisation at the borders. Dr. Forson reported that these AI-powered customs reforms have already yielded positive results, with monthly customs revenue increasing by approximately 17%.
The government also addressed the misuse of the Tax Refund Account. Steps were taken to ensure that funds earmarked for legitimate tax refunds were no longer diverted for other purposes. This amendment has led to remarkable results, improving the integrity and transparency of the tax refund process.
Dr. Forson maintained that these figures demonstrate the effectiveness of the government's approach to tax administration. The increase in non-oil tax revenue, despite the abolition of multiple taxes and the introduction of no new tax measures, underscores the success of the reform strategy. This outcome challenges the conventional wisdom that tax cuts inevitably lead to revenue reductions.
The implications of these reforms are significant for Ghana's economic outlook. Increased domestic revenue mobilisation provides the government with more resources for public spending and debt management. This could lead to greater fiscal stability and reduced reliance on external borrowing. Businesses are expected to benefit from reduced tax burdens and improved liquidity, potentially stimulating investment and job creation across various sectors. Investors will be watching closely to see if this positive trend continues, reinforcing confidence in Ghana's economic management. The focus on compliance and efficient administration sets a precedent for future fiscal policies, aiming for sustainable growth.