Finance Ministry Advancng Tax Reforms to Strengthen Revenue Mobilization, Says Daniel Nuer
Ministry of Finance is accelerating efforts to overhaul the country’s tax structure, with a focus on rationalization, compliance, and easing burdens on taxpayers, according to Daniel Nuer, Acting Director of Revenue Policy.
Speaking at the Lima Partners 2025 Budget Forum on March 20, themed “Navigating Tax Policies and Business Impact,” Mr Nuer emphasized that the government’s fiscal strategy aligns with its commitment to increasing non-tax revenue while ensuring a balanced tax burden.
“What we have done in the budget is consistent with our target of achieving a 0.6 percentage point increase in the non-tax revenue-to-GDP ratio this year. The revenue measures outlined are critical to achieving our fiscal targets for 2025 and beyond,” Mr Nuer stated.
Tax Rationalization and IMF Commitments
Ghana’s ongoing engagement with the International Monetary Fund (IMF) includes structural reforms aimed at streamlining the tax system. According to Mr Nuer, the current budget continues a tax overhaul initiated under the IMF programme, designed to ensure broader tax compliance without introducing new levies.
“The idea is not to introduce new taxes but rather implement existing ones effectively while providing relief where necessary,” he noted. “The government has removed some taxes while ensuring that others, already legislated but not enforced, are now being implemented.”
One of the notable fiscal measures is the planned review of the Growth and Stabilization Levy for the extractive sector, particularly gold mining. Ghana’s gold prices surged from $2,000 per ounce in early 2024 to nearly $3,000 per ounce in recent weeks, prompting the government to introduce an additional 2% levy on gold mining companies to capture windfall revenues.
Compliance and Taxpayer Engagement
A key pillar of the new tax strategy is enhanced compliance and taxpayer education. The Ghana Revenue Authority (GRA) is set to strengthen enforcement while adopting a more taxpayer-friendly approach.
Among the initiatives:
- Digital tax filing and payments: The GRA has fully transitioned to electronic transactions, eliminating the need for physical visits to tax offices.
- Regular tax dialogues: Quarterly engagements between government agencies, the private sector, and industry stakeholders to assess tax administration effectiveness.
- Public education campaign: A nationwide initiative to improve awareness of taxpayer rights and obligations.
Tax Amnesty and Foreign Account Disclosures
To encourage voluntary compliance, the government is expanding its tax amnesty programme. Individuals and businesses that voluntarily disclose tax liabilities will qualify for penalty and interest waivers. Additionally, Ghana has strengthened its participation in the Common Reporting Standard (CRS), allowing it to track offshore accounts held by residents.
“For individuals with undeclared foreign incomes, there is a limited window to come forward without penalties. However, after the deadline, full penalties and possible legal actions will apply,” Mr Nuer warned.
VAT System Restructuring
The Ministry of Finance is also restructuring Ghana’s Value Added Tax (VAT) system. Plans include merging VAT-related levies such as the National Health Insurance Levy (NHIL) and the Ghana Education Trust Fund Levy (GETFund Levy) into a single VAT framework to simplify administration.
“One of the main complaints from businesses has been the complexity of VAT. Our goal is to consolidate these taxes into a single framework to improve efficiency and compliance,” Nuer stated.
With these measures, the government aims to balance fiscal sustainability with economic growth, ensuring that taxation supports development without overburdening businesses and individuals.
