New Measures Will Widen Tax Net, Boost Corporate Income Revenue
By: Solomon Nartey Tetteh
Tax analyst Richard Amo-Hene says that the government’s recent tax adjustments present a major opportunity to broaden Ghana’s tax net and improve corporate income tax performance, an area where the state fell short of its 2025 target.
Speaking on the Business Breakfast Show on Zed 101.9 FM, Mr. Amo-Hene explained that the removal and restructuring of certain levies, including the COVID-19 levy, will encourage more individuals and businesses to register with the Ghana Revenue Authority (GRA).
“Those who were previously afraid to register will now come in, so you are going to widen the tax net,” he said. “Some people who believed prices were high because of taxes will also be less tax-averse. This widens the net even further.”
He stressed, however, that tax reforms alone are not enough. Continuous taxpayer education, he said, is critical to ensuring compliance and helping the public understand the benefits and implications of the new measures.
“It’s good that government has launched continuous education alongside the new forms introduced by the GRA. Even though the taxes have been reduced and the impact is there, people may not fully understand what has been done without proper education,” he noted.
Mr. Amo-Hene highlighted a major fiscal benefit for government: an expected rise in corporate income tax revenue. He explained that the removal of the COVID-19 levy, which previously contributed GH¢3.7 billion and was treated as a deductible cost for businesses will now reflect as increased profit, thereby raising taxable income.
“By taking out the COVID levy, government has effectively reduced costs for manufacturers, sellers, and even consumers. This GH¢3.7 billion will now add back to revenue, improving corporate income tax performance,” he said.
The analyst stressed that if government sustains its education campaigns and enforcement, the combined effect of widened registration and increased corporate tax liability could significantly strengthen domestic revenue mobilisation.
