The President of the Greater Accra branch of the Association of Ghana Industries (AGI), Tsonam Akpeloo, has criticised Ghana’s tax structure, arguing that businesses that diligently comply with tax regulations often end up facing additional levies instead of being rewarded for their compliance.
Speaking at a post-budget discussion organised by Lima Partners on Thursday, March 20, 2025, Akpeloo emphasised the need for the government to broaden the tax base rather than continuously imposing new taxes on already compliant businesses.
He expressed concern that this approach discourages tax compliance and places an undue financial strain on businesses striving to operate within the law.
“Our view is that we must do more as a country to expand the tax base. Currently, the tax-to-GDP ratio hovers around 13.8%, but we should be aiming for 18% or even 20%.
There has to be a deliberate effort to ensure that all eligible taxpayers contribute fairly. What is happening now is that once a company dutifully pays its taxes, it becomes a target for even more levies,” Akpeloo stated.
He noted that AGI members, who meticulously maintain their financial records and meet their tax obligations, often find themselves hit with new taxes without adequate relief measures.
“If everyone paid their fair share, the burden on compliant businesses would be significantly reduced,” he added.
Akpeloo also raised concerns about the effectiveness of tax collection mechanisms, particularly in the informal sector. He recalled that the introduction of the Ghana Card was expected to enhance tax compliance, yet many businesses and individuals still evade taxation.
“We were told that the Ghana Card would ensure that every registered individual contributes to the tax system, but I don’t believe this has been the case. We need to leverage technology to track and collect taxes efficiently,” he urged.
Highlighting the challenges in taxing the informal sector, he noted that many small and medium-sized enterprises (SMEs) generate significant revenue but remain outside the tax net.
“The informal sector can be tricky and difficult to regulate. Many SMEs earn substantial incomes, yet they are not adequately taxed. Simply ignoring this challenge is not an option. We must find innovative solutions to integrate them into the tax system,” Akpeloo concluded.
His remarks underscore the growing frustration among businesses that feel penalized for compliance while a significant portion of the economy remains untapped for tax revenue. With Ghana striving for economic stability, calls for a fairer and broader taxation approach are expected to intensify.
