By: Ibrahim Issah ]
The International Monetary Fund (IMF) has projected that Ghana’s non-oil revenue will improve by approximately 0.6 percent of GDP in 2026, reflecting the impact of ongoing fiscal and tax reforms introduced by the government. This improvement is expected to contribute to Ghana’s economic growth, forecasted to reach 4% in 2025 and rebound to 4.8% in 2026.
The government’s objective is to permanently raise the non-oil revenue-to-GDP ratio by at least 0.6% in 2025 and 0.4% in 2026, aiming to achieve a non-oil revenue-to-GDP ratio of at least 16.5% by 2026. To achieve this, the government plans to implement measures such as eliminating selected VAT exemptions, deploying e-VAT, and improving tax administration.
Ghana’s tax-to-GDP ratio has been low compared to peers, with non-oil revenues stagnating in recent years. The World Bank and IMF estimates show that value-added tax exemptions result in a 2-3% reduction in the tax-to-GDP ratio. The government must review the numerous tax exemptions and reliefs granted to enhance revenue mobilization.
