The Ghana Revenue Authority (GRA) has renewed its call for businesses and individual taxpayers to fully comply with the country's tax laws. This move aims to strengthen domestic revenue mobilisation and reduce Ghana's reliance on external borrowing. Voluntary compliance remains central to Ghana's fiscal recovery and long-term development agenda.
David Lartey-Quarcoopome, Tax Administrator and Coordinator of Domestic Tax Revenue Division Projects at the GRA, highlighted the importance of compliance. He stated that stronger engagement between taxpayers and the Authority is critical. This is necessary to improve compliance, broaden the tax base, and ensure the state has resources for public services. The GRA warns that late filing and poor record-keeping can result in penalties, interest charges, and legal sanctions.
Ghana is rebuilding its financial resources after years of debt pressures and economic instability. Domestic revenue is a core pillar of public finance. It supports investments in crucial sectors like infrastructure, healthcare, education, and security. The country's tax-to-GDP ratio currently lags behind many other emerging economies. This limits the government's ability to fund development without borrowing heavily.
Mr. Lartey-Quarcoopome urged taxpayers to use the GRA's service centres and digital platforms. He noted that access to clear information is a fundamental right under tax administration laws. He also stressed that many compliance failures stem from a poor understanding of filing duties and documentation requirements. Registration, timely filing of returns, issuing tax invoices, and proper record-keeping are mandatory under the Revenue Administration Act, 2016, Act 915.
This reminder is especially important for small businesses, self-employed persons, and informal-sector operators. These groups often struggle with proper bookkeeping and tax filing. Ghana's large informal economy presents a significant challenge for widening the tax net. While formal sector employees are often taxed through payroll, many informal businesses remain outside effective tax coverage. This limits revenue collection and places a heavier burden on compliant taxpayers.
The GRA's strategy seeks to make compliance easier while also enforcing rules against non-compliance. Mr. Lartey-Quarcoopome advised registered taxpayers with no business activity during a period to submit 'nil returns'. Many taxpayers mistakenly believe they do not need to file if they had no income, but filing obligations continue once registered. Submitting nil returns helps the GRA maintain accurate records and prevents avoidable penalties.
The Authority has accelerated its digitalisation, taxpayer education, and compliance monitoring initiatives. These efforts aim to improve revenue collection efficiency. Digital tools like online filing systems and electronic invoicing are meant to reduce inconvenience and improve transparency. They also help the GRA track transactions more effectively. The objective is to foster a tax culture where compliance is a routine part of doing business.
Improving tax compliance is a core economic policy requirement for Ghana. Increasing domestic revenue would help fund infrastructure, reduce budget deficits, strengthen debt sustainability, and allow for more social spending. The success of this domestic revenue mobilisation depends on cooperation from taxpayers and effective enforcement by the GRA.