The President of the Greater Accra branch of the Association of Ghana Industries (AGI), Tsonam Akpeloo, has called for a more equitable tax system in Ghana, arguing that businesses that consistently comply with tax regulations are being unfairly burdened with additional levies.
Speaking at a post-budget discussion organized by Lima Partners on March 20, 2025, Akpeloo emphasized the need to broaden the tax base rather than imposing new taxes on businesses that already fulfill their obligations. He expressed concern that over-taxing compliant businesses discourages tax adherence and stifles economic growth.
“Our tax system should encourage compliance, not penalize it. Right now, once a company diligently pays its taxes, it becomes a target for even more levies,” he stated.
Akpeloo pointed out that Ghana’s tax-to-GDP ratio stands at 13.8%, significantly lower than the 18-20% target the country should be aiming for. He stressed that expanding the tax base to include more individuals and businesses—particularly from the informal sector—would help reduce the burden on compliant taxpayers.
“If everyone paid their fair share, compliant businesses wouldn’t be so heavily taxed. The government must prioritize bringing more entities into the tax system rather than overburdening those already contributing,” he added.
Akpeloo also questioned the effectiveness of Ghana’s tax collection mechanisms, particularly in the informal sector, where many businesses generate substantial revenue but remain untaxed. He criticized the underutilization of the Ghana Card, which was expected to enhance tax compliance but has not yielded the desired results.
“We were told the Ghana Card would help track and tax individuals more efficiently, yet many businesses and individuals still evade taxation. We need to leverage technology better to track tax payments and enforce compliance,” he urged.
He further emphasized that while small and medium-sized enterprises (SMEs) play a vital role in Ghana’s economy, many remain outside the tax net. Ignoring this challenge, he warned, is not sustainable for the country’s economic future.
“The informal sector is vast, and many SMEs earn significant incomes yet do not contribute adequately to the tax system. We need innovative policies to integrate them into the tax framework,” he concluded.
Akpeloo’s remarks highlight growing frustration among businesses that feel unfairly targeted while a large portion of the economy remains untaxed. As Ghana strives for economic stability, demands for a fairer and more inclusive taxation system are expected to grow louder.
