Tax problems in Ghana are costing the nation over GH₵9 billion annually, according to Professor Isaac Boadi, Dean of the Faculty of Accounting and Finance at the University of Professional Studies, Accra (UPSA). He urged the government to show moral courage by digitalizing the country’s tax system to curb massive revenue losses.
Speaking at the UPSA National Dialogue on the theme “Tackling Tax Leakages in Ghana,” Professor Boadi revealed that Ghana loses over GH₵9 billion annually due to tax evasion, corruption, and illicit financial flows. He described the situation as a threat to the nation’s development, saying the losses represent missed opportunities for critical investments in healthcare, education, and youth development.
“These figures represent hospitals, classrooms, medicines, and the dreams of our young people being deferred,” he emphasized. “GH₵9 billion is four times the annual budget for Free SHS and six times the allocation for the National Health Insurance Scheme.”
Highlighting findings from a university-led research project, Professor Boadi criticized Ghana’s low tax-to-GDP ratio of 13.5%, which he said is far below both global and African standards. Citing World Bank reports, he argued that if Ghana could close its tax loopholes, it could boost tax revenue by an additional 2–4% of GDP.
“A country that collects only 13% of GDP in taxes cannot adequately support infrastructure projects,” he stated.
Professor Boadi identified two major challenges fueling Ghana’s tax problems: the dominance of the informal sector and the Ghana Revenue Authority’s (GRA) difficulty in taxing digital and online businesses. He noted that the informal sector accounts for 80–90% of economic activity but contributes only about 10% to tax revenue. This, he said, creates a major gap in the country’s revenue collection efforts.
“The informal sector contributes 35–40% of our GDP, yet compliance is below 10%. That alone is a clear signal that we’re going to struggle with revenue,” he noted.
He also criticized the GRA’s limited capacity to tax businesses that operate entirely online, saying new strategies are urgently needed to bring digital companies into the tax net.
Calling digitalization a national imperative, Professor Boadi declared, “Digitalization is not just a technical upgrade—it is a battle against institutionalized theft. The fight to digitize our revenue system is a fight for Ghana’s survival.”
He concluded with a strong appeal to government leaders and tax authorities to act decisively.
“If revenue is power, then our only option is to digitalize what we have. Our authorities must have the courage to block the leakages,” he said.
The UPSA National Dialogue brought together academics, policymakers, and tax professionals to discuss solutions to Ghana’s persistent tax revenue challenges.
