Tax consultant Francis Timore Boi has expressed doubt that the government will achieve its revenue target for 2025, citing insufficient public education on the recently introduced modified taxation scheme aimed at broadening the country’s tax base.
Speaking to Joy Business, he acknowledged the potential of the simplified tax framework, especially in boosting contributions from Ghana’s vast informal sector.
However, he warned that poor sensitization and the late rollout of the scheme could undermine revenue projections for the year.
“I doubt the targets will be met, largely because education on the new tax module has been minimal, and its implementation is starting later than expected,” he stated, referencing the fact that the 2025 national budget, which outlined the scheme, was only passed in March.
The modified taxation scheme, which focuses on improving income tax collection rather than consumption taxes, is seen as a key strategy to formalize revenue collection within the informal economy, which accounts for an estimated 80% of Ghana’s economic activity.
While expressing optimism about the long-term benefits of the scheme, Mr. Timore Boi stressed the need for more aggressive public education to drive compliance.
He called on the Ministry of Finance to increase budgetary support to the Ghana Revenue Authority (GRA) for public sensitization efforts.
“This initiative has great potential, but without proper groundwork, the benefits may not be realized until 2026 or beyond,” he added, pointing out that despite a decade of discussions, the scheme is only now being implemented.
The modified taxation scheme is part of broader government efforts to enhance domestic revenue mobilization and reduce the country’s reliance on external borrowing.
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