Over the years, Ghana has generated less revenue than is needed for the country’s development, in spite of our multiple and high taxes. The shortfall in revenues has compelled the country to resort to incessant borrowing, leading to perennial debt crises, while paying seventeen visits to the IMF for financial bailouts.
There is room to increase tax revenue, including by plugging loopholes, broadening the tax net through increased formalization of the economy, improving compliance and leveraging new technologies to exploit new taxes in the vast e-commerce space. Nonetheless, given Ghana’s limited GDP, even with our best effort, the country’s tax revenue cannot suffice for its huge development needs.