We aim to achieve 20% tax-to-GDP ratio by 2027 — GRA

To strengthen the country's fiscal foundations, the Ghana Revenue Authority (GRA) has set its sights on achieving a 20% tax-to-GDP ratio by the year 2027.

This target, outlined in the GRA's strategic plan for 2023-2027, represents a significant increase from the current tax-to-GDP ratio of 14%, which was already a notable achievement in 2023.

"Reaching a 20% tax-to-GDP ratio is a critical goal for us," Dr Alex Moyem Kombat, Assistant Commissioner of Research and Policy at a forum organized by SEND Ghana on Thursday, November 7.

“It will not only enhance the government's ability to fund essential public services but also strengthen the overall resilience of Ghana's economy,” he added.

The GRA's strategic plan, which builds on the success of its previous three-year plans, outlines a comprehensive roadmap to drive this transformation.

Key initiatives include the continued implementation of technological advancements, such as e-filing, e-payment, and e-invoicing, as well as the implementation of targeted policy measures.

"We have already seen the positive impact of our policy reforms, including the Customs Amendment Act, the VAT Amendment Act, and the Excise Duty Amendment Act," the official explained. "These measures have streamlined tax collection, closed loopholes, and introduced new revenue streams."

In 2023, tax revenue accounted for a staggering 83.13% of the government's total revenue, underscoring the critical role it plays in funding essential public services and driving economic growth.

"Without a robust tax system, the government would struggle to maintain basic services, let alone invest in the infrastructure and social programs that are vital for our country's development," the official said.

To reach this target, the GRA is focusing on several key areas, including expanding the tax base, enhancing compliance, and leveraging technology to improve the efficiency of tax collection.

"We are working closely with stakeholders, including the private sector and civil society organizations, to foster a culture of tax compliance and shared responsibility," the official said. "By building trust and demonstrating the tangible benefits of tax revenue, we can encourage more citizens and businesses to fulfill their civic duty."

The GRA's strategic plan also emphasizes the importance of international cooperation and the adoption of best practices from around the world.

“We are learning from the experiences of other countries and adapting their successful strategies to the Ghanaian context," Dr. Kombat noted.