Out of approximately 7.9 million registered taxpayers in Ghana, only about 1.5 million are actively paying taxes, according to Deputy Minister of Finance, Dr. Alex Ampaabeng.

This figure represents approximately 19% of the registered taxpayer base.

Dr. Ampaabeng made this disclosure at the launch of the 8th Ghana Economic Update by the World Bank, highlighting significant challenges in the country’s tax collection system.

He emphasized the government's ongoing efforts to address these issues, including a comprehensive clean-up of the tax database in collaboration with the Ghana Revenue Authority (GRA).

“We are committed to improving our fiscal environment and increasing tax revenue,” Dr. Ampaabeng stated.

“Reducing the human interface in tax collection and enhancing digital methods are crucial steps in this process. The Ministry of Finance is working closely with the GRA to address tax infractions and ensure better compliance.”

The current tax collection rate in Ghana has been notably low compared to its peers. Between 2017 and 2021, the country's average tax collection was 13.2% of Gross Domestic Product (GDP), significantly below the Sub-Saharan Africa average and 8 percentage points short of the estimated tax capacity of 21.2% of GDP.

The World Bank report, launched alongside Dr. Ampaabeng's address, highlighted areas where Ghana’s tax policy and compliance mechanisms could be improved.

The report suggested rationalizing large tax expenditures and addressing inefficiencies within the tax policy framework to enhance revenue collection. It emphasized the need for a balanced approach that mitigates revenue losses while considering the social impacts.