The Finance Minister, Dr Cassiel Ato Forson, says ongoing tax reforms by the government are expected to generate significant revenue gains that could pave the way for a reduction in tax rates by the end of 2027.
According to him, the reforms are focused on improving tax compliance, widening the tax base and ensuring that individuals and businesses that are required to pay taxes contribute their fair share to national development.
Speaking on the Citi Breakfast Show on Friday, July 24, after presenting the 2026 Mid-Year Budget Review to Parliament, Dr Ato Forson said the government remains committed to implementing the reforms despite possible resistance from some stakeholders.
“It is difficult to fight too many wars at the same time. The 2026 budget introduced a number of reforms. We have implemented some in the first half of the year and we are moving to the second phase of implementation,” he said.
The Finance Minister explained that the next phase of the reforms will focus largely on expanding the tax base and improving compliance, noting that weaknesses in the current system have allowed some businesses to avoid meeting their tax obligations.
He highlighted challenges in Value Added Tax (VAT) collection, accusing some businesses of collecting taxes from consumers but failing to remit the funds to the state, describing them as “mini GRA offices”.
Dr Ato Forson said the introduction of electronic point-of-sale devices is part of measures aimed at reducing revenue leakages and improving VAT collection.
“The VAT gap is about 60%. There are many GRA offices around this country individuals standing themselves as tax authorities. They collect the tax and pocket it instead of giving the money to the state. I call them mini GRAs,” he stated.
He added that the measures could increase VAT revenue by between 30% and 60% within one year, arguing that improved compliance would create the fiscal space needed for government to review existing tax rates.
“I strongly believe that by the end of next year, those reforms we have put in place will yield results to the extent that government will begin to lower the tax rates,” Dr Ato Forson said.
The Finance Minister maintained that the government’s approach is to first strengthen revenue mobilisation before considering reductions in tax rates
Credit: Citi Newsroom