Finance Minister Dr Cassiel Ato Forson says Ghana recorded higher non-oil tax revenue in 2025 despite abolishing several taxes, including the Electronic Transfer Levy (E-Levy), insisting that effective tax administration yields better results than imposing additional taxes.
Presenting the 2026 Mid-Year Budget Review in Parliament on Thursday, July 23, Dr Forson said the government’s tax reforms were aimed at easing the burden on businesses and households while boosting domestic revenue through improved compliance and efficient tax collection.
“Government collected more taxes in 2025 even after abolishing the nuisance taxes, including the E-Levy,” he told Parliament.
According to the Finance Minister, non-oil tax revenue increased from 12.6% of Gross Domestic Product (GDP) in 2024 to 13.1% in 2025, representing a 0.5 percentage-point rise.
He said the government removed a number of taxes it considered burdensome, including the E-Levy, betting tax, COVID-19 Health Recovery Levy, emissions tax and VAT on motor insurance.
Dr Forson also noted that the government carried out what he described as the first comprehensive Value Added Tax (VAT) reforms since 2015 to eliminate distortions in the tax system, improve efficiency and strengthen compliance.
According to him, the tax relief measures have enabled businesses to retain more working capital, allowing them to invest, expand and create jobs.
Beyond the tax reforms, the Finance Minister said the government had introduced significant customs reforms driven by artificial intelligence and other digital technologies to curb revenue leakages and improve tax collection.
“Since the introduction of the AI-powered customs reforms, monthly customs revenue has increased by approximately 17%, reflecting stronger compliance, more effective enforcement, and significantly reduced leakages,” he said.
He further disclosed that the government had ended what he described as the misuse of the Tax Refund Account, ensuring that funds set aside for genuine tax refunds are no longer diverted for other purposes.
Dr Forson attributed the improved revenue performance to better policy implementation and stronger compliance rather than increased taxation.
“The lesson here is simple. Better policy, stronger compliance and smarter administration will always deliver more sustainable revenue than higher taxes,” he stated.
He added that the government’s broader fiscal strategy is focused on rebuilding investor confidence, supporting private sector growth, easing the burden on households and businesses, and increasing domestic revenue through efficient tax administration rather than introducing new taxes.
Also read:
