Only 1.2 million Ghanaians currently pay taxes says latest report
A recent report issued by the tax authority in Ghana indicates that only 1.2 million citizens currently pay taxes. This figure highlights a substantial gap in national tax compliance and raises serious concerns about revenue mobilisation and fairness in the tax system.
Officials attribute the low compliance partly to limited public education and hesitancy among informal sector workers to engage with taxation processes. Many small business owners artisans traders and informal workers reportedly avoid registering with the tax authority or fail to file returns regularly.
In response the tax authority has begun a nationwide tax sensitisation campaign targeting informal sector workers including electricians plumbers tailors traders artisans and apprentices. The campaign aims to introduce a Modified Taxation Scheme designed to simplify registration submission and compliance to encourage voluntary participation.
Under this scheme taxpayers are expected to register via a digital platform receive simplified assessment and pay taxes in a manner more suited to informal earnings. Officials say this model seeks to widen the tax net reduce administrative burden and improve equity across different income groups.
Experts say the low number of actual taxpayers undermines the ability of government to meet spending needs on infrastructure health education and social services. With a majority of working citizens outside the formal payroll system substantial tax revenue remains untapped.
Some economists argue that improving compliance will require not just simpler systems but also public trust in governance transparency and visible returns on tax payments. Without assurance that revenue is used effectively many citizens remain reluctant to register or pay.
To address these challenges the tax authority has pledged continued public education expanded outreach programmes and improved digital services for taxpayers. Authorities emphasise that everyone, employees businesses and informal sector workers have civic duty to contribute to national development.
The 1.2 million figure serves as a wake-up call for policymakers and the public about the urgent need for reforms in tax policy compliance education and equitable burden sharing. As Ghana seeks to rebuild its economy and support growth initiatives the expansion of the tax base remains a critical step.
