Financial Analyst and Banking Consultant, Dr. Richmond Atuahene, has emphasized that the success of the new government's reset agenda hinges on a deliberate strategy to enhance Ghana’s domestic revenue mobilization.
Dr. Atuahene underscored the critical need for the country to address inefficiencies in its tax collection systems, which have resulted in a tax-to-GDP ratio of approximately 13.8%, far below the Sub-Saharan African (SSA) average of 18.4% and the Lower-Middle Income Country (LMIC) benchmark of 17%.
Speaking on the country’s economic challenges, he noted that Ghana’s inability to generate adequate domestic revenue has hindered its ability to fund long-term growth initiatives and poverty reduction programs.
This is compounded by the strain of servicing a high public debt burden.
“With inflation soaring, a depreciating currency, and sluggish economic growth, the country must adopt drastic measures to improve revenue collection and enhance its economic resilience,” he noted.
Dr. Atuahene highlighted several structural bottlenecks that have stifled Ghana’s revenue mobilization efforts.
He cited widespread tax exemptions and reliefs, the underutilization of property taxes, and the politicization of certain tax handles as major setbacks.
“Reforming the tax exemption regime and diversifying revenue streams, especially property taxes, is imperative. Politicization of these systems must end to unlock their potential for generating billions in revenue,” he remarked.
Additionally, Dr. Atuahene pointed to the inefficiency of Ghana’s tax policy framework compared to its peers.
He referenced countries like South Africa and Kenya, which have implemented progressive tax systems that effectively harness wealth from higher-income groups and political elites.
“In contrast, Ghana’s tax structure remains less progressive, with lower rates and significant exemptions that dilute the tax base,” he observed.
The financial analyst also stressed the need to combat pervasive corruption, which he described as a significant drain on the country’s revenue.
He advocated for corruption to be treated as a national crime, emphasizing its role in weakening domestic revenue mobilization efforts.
“Corruption drastically reduces tax revenues and forces governments to rely on borrowing to finance expenditure,” he warned.
Dr. Atuahene further called for the retooling of the Ghana Revenue Authority (GRA) with advanced, digitized systems to improve operational efficiency.
He also recommended a review of revenue streams from the mining sector to maximize returns.
The new government’s reset agenda aims to overhaul Ghana’s economic governance by addressing structural bottlenecks, restoring macroeconomic stability, and stimulating growth.
Key pillars of the agenda include fiscal discipline, support for small and medium enterprises (SMEs), renegotiating the IMF bailout, and enhancing productivity.
Dr. Atuahene believes that achieving these objectives requires an urgent focus on boosting domestic revenue mobilization to ensure sustainable economic development.
“With these reforms, the government can efficiently mobilize the revenue needed to implement its reset agenda and improve the socio-economic conditions of Ghanaians,” he concluded.
Story by: Joshua Kwabena Smith
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