Government rules out new taxes in 2027, targets GH¢323.4bn revenue

Finance Minister Dr Cassiel Ato Forson has announced that the government will not introduce any new taxes in 2027, despite setting a revenue and grants target of GH¢323.4 billion and expenditure of GH¢389.2 billion for the year.

He said the government would instead intensify efforts to improve revenue collection, eliminate leakages and strengthen tax administration to increase its domestic revenue mobilisation.

Presenting the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12, Dr Forson said the decision was intended to prevent additional tax burdens on households and businesses while ensuring that existing revenue laws were effectively enforced.

“This 2027 Budget will not introduce any new tax. Our task is to collect what is lawfully due, close the leakages and make the revenue system work better,” he said.

He assured taxpayers of clear regulations, fair treatment and timely decisions, adding that the government wanted to build a revenue system that was efficient, predictable and responsive to the needs of businesses and individuals.

The Finance Minister said the decision was supported by improved revenue performance in 2026, with total revenue and grants reaching GH¢219.3 billion between January and October, exceeding the target of GH¢211.8 billion by 3.5 per cent.

Domestic revenue stood at GH¢218.2 billion, representing 4.1 per cent above the GH¢209.6 billion target. Non-oil tax revenue for the 10-month period amounted to GH¢170 billion, while non-oil non-tax revenue reached GH¢23.7 billion.

Provisional figures for the same period showed that total expenditure on a commitment basis amounted to GH¢239 billion, equivalent to 15 per cent of GDP. The amount was 7.6 per cent below the projected target, reflecting what Dr Forson described as firm expenditure controls.

He said the government had achieved the revenue gains without introducing new taxes or increasing existing tax rates and would maintain the same approach in 2027.

For the coming fiscal year, the government is projecting total revenue and grants of GH¢323.4 billion, representing 17.9 per cent of Gross Domestic Product (GDP). This comprises GH¢320.2 billion in domestic revenue and GH¢3.2 billion in project grants.

The domestic revenue target is made up of GH¢256.1 billion in non-oil tax revenue, GH¢33.5 billion in non-oil non-tax revenue, GH¢15.5 billion in oil revenue and GH¢15.1 billion from other revenue sources.

On expenditure, Dr Forson said the government had planned to spend GH¢389.2 billion on a cash basis, equivalent to 21.6 per cent of GDP.

The allocation includes GH¢104.1 billion for employee compensation and GH¢61 billion for interest payments. Another GH¢13.7 billion has been earmarked for goods and services, while transfers to statutory and earmarked funds are expected to amount to GH¢76.5 billion.

Capital expenditure has been projected at GH¢100.4 billion.

“Based on the revenues and expenditures above, overall deficit on a cash on basis is projected to be GH¢65.8bn, equivalent to 3.6 per cent of GDP,” he said, indicating that the deficit would be financed through both domestic and external sources.

Dr Forson recalled that since 2025, the government had introduced several tax relief measures to ease financial pressures on households and businesses.

Among the taxes abolished were the Electronic Transfer Levy (E-Levy), withholding tax on betting and lottery winnings, the COVID-19 Levy, the Emissions Levy and Value Added Tax (VAT) on motor vehicle insurance.

He said the decision not to introduce new taxes in 2027 would consolidate the relief already provided to taxpayers.

As part of efforts to strengthen revenue mobilisation, the government plans to review and modernise key tax legislation, including the Income Tax Act, the Revenue Administration Act, stamp duty administration and the Communications Service Tax framework.

The government will also review customs tariff grant duty concessions on selected raw materials, machinery and industrial inputs to support local production. Regulations will be introduced to ensure consistent implementation of the reformed tax laws.

Dr Forson further announced plans to review Ghana's Double Taxation Agreements in line with the United Nations Framework Convention on International Tax Cooperation. The exercise, he said, would help address tax evasion and treaty abuse while protecting legitimate investments.

He added that dispute resolution mechanisms would be strengthened to make tax compliance less complicated and costly, while ensuring that taxpayers received fair treatment and timely decisions.

The Finance Minister said the government would sustain revenue growth through the implementation of the Medium-Term Revenue Strategy, improved compliance and the use of technology to strengthen tax administration, particularly in the digital economy.

He also pledged to improve expenditure efficiency by rationalising government spending, eliminating leakages and addressing operational weaknesses that prevent public funds from achieving their intended purposes.

Dr Forson said the government remained committed to maintaining fiscal and debt sustainability while creating room for economic transformation.

As part of that agenda, the government intends to invest 1.5 per cent of GDP, equivalent to GH¢30 billion, in the New Economy programme in 2027.

He explained that the investment would be financed through a one-percentage-point-of-GDP reduction in the primary surplus target, alongside tax reforms and compliance measures expected to generate an additional 0.5 per cent of GDP.

The Finance Minister commended Ghanaians for the sacrifices made in supporting fiscal discipline and pledged that public resources saved through improved expenditure management would be directed towards productive activities.

He said every cedi saved would be used to support job creation, reduce imports, increase exports and build lasting value for future generations.