Ghana’s Tax Authority Declares War on VAT Evasion

The Ghana Revenue Authority (GRA) has launched a renewed effort to tackle revenue shortfalls in the Value Added Tax (VAT) system as part of broader moves to strengthen the country’s tax collection and compliance.

At a high-level stakeholder engagement held this week, the GRA outlined plans to implement strategic reforms aimed at plugging leakages and boosting VAT revenue — a vital component of Ghana’s tax system that currently contributes just 20% to total annual revenue.

This consultation comes on the heels of a 17% increase in VAT collections last year, a sign of modest progress, but officials believe the system still holds untapped potential.

Anthony Kwasi Sarpong, Acting Commissioner-General of the GRA, emphasized that strict enforcement of compliance measures and improved cooperation from taxpayers would significantly raise national revenue.

“When we look at the tax laws, we realise there are many revenue opportunities within the system,” he said. “If we enforce compliance and taxpayers fulfil their obligations, we can generate the resources needed to develop our nation.”

The dialogue also marked the official launch of Tax and Good Governance Month, which is observed every April to raise awareness about tax responsibility. This year’s theme,

“Transforming for Impact and Growth: Accelerating Domestic Revenue Mobilisation Through Effective Compliance Tools,” highlights the need to modernize tax collection and enhance transparency.

Key discussions at the event focused on systemic weaknesses in VAT administration, including underreporting, fraudulent invoicing, and non-registration by eligible businesses.

The GRA hopes that input from industry stakeholders, tax experts, and the private sector will help shape a more efficient VAT system.

Ashanti Regional Minister Dr. Frank Amoakohene also addressed the gathering, acknowledging business owners’ concerns about high import duties and the cost of transporting goods from Ghana’s ports.

He assured stakeholders that the government is working to resolve these issues to create a more business-friendly tax environment.

Also present were high-ranking GRA officials, including Commissioner of Customs Brigadier General Glover Annan; Commissioner of Support Services Dr. Alex Adomako-Mensah; and Commissioner of the Domestic Tax Division Apenteng Gyamera.

As the government moves to implement reforms outlined in the 2025 Budget and Economic Policy, the GRA is calling on all Ghanaians to support the process by staying compliant and engaging in open dialogue.