The Executive Director of Green Tax Youth Africa (GTYA), Mr. Nii Addo, has commended the Ministry of Finance and the Ghana Revenue Authority (GRA) for their bold and strategic efforts in addressing Ghana’s long-standing revenue mobilisation gap in the informal sector.
With over 80% of the country’s revenue potential tied to this segment, the new measures, if properly executed and supported, can transform Ghana’s fiscal space and development trajectory.
Mr. Nii Addo described the move as “timely and progressive,” noting that it reflects a strong governmental response to long-standing calls from stakeholders to innovate and widen the tax net for more equitable and inclusive domestic resource mobilization, which must have a reflex return of easing the burden on the formal sector class.
“This policy direction is a step in the right direction. The informal sector remains the bedrock of Ghana’s economy and revenue potential. Strengthening tax compliance in this space can significantly close the fiscal gap and drive inclusive development,” said Mr. Addo.
However, GTYA urges the government to complement these efforts with critical macroeconomic reforms to shield low-income groups, particularly youth and women, from worsening inequality. Mr. Addo drew attention to recent utility price hikes and rising fuel costs, which disproportionately burden lifeline consumers and undermine household resilience.
Key Economic Policy Recommendations from GTYA
- GTYA calls on the Public Utilities Regulatory Commission (PURC) and the government to revise the quarterly electricity increment mechanism, which has deepened the inequality gap and affected lifeline consumers, especially in low-income communities.
- Rising fuel prices, caused by excessive taxes and levies, have cascading effects on transport, commodities, and service delivery. GTYA proposes capping all fuel-related levies and taxes at GH¢1.50 at the pumps on what is already being implemented to provide financial relief and allow citizens to share in Ghana’s oil wealth benefits.
- GTYA calls on the government to recover every cedi corruptly taken by politically exposed persons and public officials whose unexplained wealth suggests misuse of state resources. These funds must be redirected toward public development priorities.
- Ghana loses billions annually through corporate tax evasion, transfer pricing manipulation, and other illicit outflows. The government must strengthen regulatory and tax administration systems, increase transparency in beneficial ownership, and ensure strict penalties for multinational tax abuse.
- GTYA warns that excessive tax holidays and exemptions, especially to foreign corporations, are draining national coffers. These policies must be rationalized and tied to clear socio-economic return indicators, including job creation, skills transfer, and local content participation.
- Ghana is ranked as the 12th most expensive country in Africa, so the government must urgently
respond to the high cost of utilities, rent, food, and transport, which remain basic but
unaffordable for many. - GTYA advocates for progressive taxation policies that target high-net-worth individuals, including levies on private jet owners, premium flight travelers, and cargo shipping lines, aligning with proposals from the Financing for Development Conference in Seville, Spain, on 30th June 2025.
- These “green taxes” can fund climate adaptation and innovation initiatives while ensuring fiscal equity.
Call to Action
Mr. Addo concluded by urging CSOs, academia, private sector leaders, and international development partners to support the government in building a more equitable and resilient fiscal framework, grounded in justice, efficiency, and sustainability.
“The true measure of sound economic policy is its impact on the pockets of ordinary people. If citizens do not feel relief within six months of implementation, we must return to the table and revise our strategies. Ghana must rise to the moment,” Mr. Addo stated.
