Madam Elsie Appau-Klu, a Lawyer and Technical Advisor to the Commissioner General of the Ghana Revenue Authority (GRA), has said it was time for citizens to recognise the importance of taxation and take ownership of their role in shaping Ghana’s future.
She said taxes were the primary source of revenue for the government, accounting for over 60 per cent of total revenue and used to provide essential services such as healthcare, access to justice, democracy, education, major infrastructure and security for all citizens, businesses and residents.
Madam Appau-Klu who doubles as the National Coordinator for the Sustained Tax Education Programme and Chairperson for the Modified Taxation Scheme Implementation Committee, made the remarks in a write up entitled, “Know the Abolished Taxes in Ghana,” and shared with the Ghana News Agency.
She said, “by paying taxes, citizens contribute to the development of their communities and the country as a whole.”
She mentioned some key benefits of increased tax participation as improved revenue mobilisation for development projects, enhanced economic stability and growth, better public services and infrastructure, as well as reduced tax burden on compliant taxpayers.
Madam Appau-Klu said it also provided a complainant and committed taxpayer the opportunity to demand greater accountability from government without any form of guilt.
“However, challenges to tax compliance including limited awareness of tax obligations and benefits, limited access to tax services and support, perceived corruption and mismanagement of funds still persist despite the importance of paying tax,” she said.
Madam Appau-Klu noted that Ghana’s Parliament had abolished several tax laws since 2024, a decision, which was carefully taken to enhance the tax system, lessen tax burdens on taxpayers and promote economic growth.
She said the abolished taxes which included the COVID-19 Health Recovery Levy, was to reduce the financial burden on individuals and businesses, adding that its abolition was expected to return some GHS3.7 billion to individuals and businesses in 2026 alone.
Madam Appau-Klu said the abolished VAT Flat Rate also aimed to unify the VAT regime and simplify compliance processes for taxpayers, while the Electronic Transfer Levy (E-Levy) on the other hand, was expected to significantly revive digital financial services to benefit small businesses and individuals who rely on mobile payments for ease of payment on daily transactions.
She said the Emissions Levy was further abolished as part of the efforts to promote environmental sustainability, while the VAT on Insurance was removed to make insurance more affordable and accessible to resident taxpayers.
Additionally, the Betting Tax was removed to address critical governance concerns from the youth and to sanitise the gaming industry, ensuring responsible gaming among young adults.
Madam Appau-Klu further explained that the abolishment of the Withholding Tax on Lottery Winnings was also to boost opportunities for young people in the gaming industry.
She said the benefits of annulling the various taxes were to simplify the tax administration system, improve compliance by reducing administrative burdens on businesses and individuals, promote economic growth through stimulation of growth in sectors like gaming, insurance, and digital finance, and enhancing competitiveness by making Ghana’s tax system more attractive to investors.
Madam Appau-Klu said the Value Added Tax Act, 2025 (Act 1151), had also introduced reforms, including a Unified VAT Rate of 15 per cent on all taxable supplies, whilst the increased VAT registration threshold from GHS200,000 to GHS750,000, is also meant to benefit micro and small enterprises.
“Indeed, the current VAT reform enables the GETFund Levy and NHIL to be deductible as input VAT. The cascading effect of this move is to reduce the cost of doing business, particularly for small businesses. These tax abolitions were led by government to reduce the tax burden on citizens and residents, under the RESET Agenda.”
Madam Appau-Klu said taxation was a crucial aspect of any economy, and Ghana was no exception, adding that the government’s ability to provide essential services and infrastructure depended heavily on the taxes paid by citizens and residents.
“However, tax compliance remains a challenge in Ghana, with many individuals and businesses evading payment of taxes,” she added.
Madam Appau-Klu revealed that currently Ghana had only about 29 per cent of eligible taxpayer paying VAT, with about 19 per cent eligible citizens paying their Income Taxes properly and the country was also able to collect only about 29 per cent of income tax on imports through its customs division.
She said to address the issue, it was essential to promote citizens’ and residents’ participation in national development, through taxation.
Madam Appau-Klu urged the taxpayer to double check invoices when making any purchases, to avoid being charged taxes which were no longer recognised by law, “since the government has done its part to abolish some key and unfriendly taxes from our tax laws.”
She admonished business owners to avoid charging taxes that were no longer required by law since same could be construed as illegitimate.
