Accra: Madam Elsie Appau-Klu, a Lawyer and Technical Advisor to the Commissioner General of the Ghana Revenue Authority (GRA), has called on citizens to acknowledge the significance of taxation and take responsibility for their roles in shaping Ghana's future. She emphasized that taxes serve as the primary revenue source for the government, accounting for over 60% of total revenue, and are vital for providing essential services such as healthcare, education, infrastructure, and security.
According to Ghana News Agency, Madam Appau-Klu, who also serves as the National Coordinator for the Sustained Tax Education Programme and Chairperson for the Modified Taxation Scheme Implementation Committee, shared her insights in a write-up titled 'Know the Abolished Taxes in Ghana.' She highlighted that citizen participation in tax payment is crucial for community and national development, leading to improved revenue mobilization, economic stability, and enhanced public services.
Madam Appau-Klu addressed the challenges facing tax compliance, including limited awareness of tax obligations, perceived corruption, and mismanagement of funds. She noted that despite these challenges, Ghana's Parliament had abolished several tax laws since 2024 to enhance the tax system and promote economic growth. Notable abolished taxes include the COVID-19 Health Recovery Levy, expected to return GHS3.7 billion to individuals and businesses in 2026, and the VAT Flat Rate, which aims to unify the VAT regime.
The abolition of taxes like the Electronic Transfer Levy (E-Levy) is anticipated to boost digital financial services for small businesses, while the removal of the Emissions Levy supports environmental sustainability. The VAT on Insurance and Betting Tax have also been abolished to make services more affordable and address governance concerns in the gaming industry.
Madam Appau-Klu explained that these tax reforms are designed to simplify the tax administration system, promote economic growth, and enhance competitiveness. The Value Added Tax Act, 2025 (Act 1151), introduces a Unified VAT Rate and raises the VAT registration threshold, benefiting micro and small enterprises. These reforms aim to reduce business costs and stimulate growth in sectors like gaming, insurance, and digital finance.
Despite these efforts, tax compliance remains a significant challenge in Ghana, with low participation rates among eligible taxpayers. Madam Appau-Klu urged citizens to actively participate in national development through taxation, emphasizing the importance of verifying invoices to avoid being charged abolished taxes. She also advised business owners against charging illegitimate taxes, reinforcing the government's commitment to reducing the tax burden under the RESET Agenda.