Concerns are mounting over Ghana’s tax enforcement regime as Patrick Yaw Boamah petitions the Finance Ministry to review what he describes as punitive interest and penalty provisions under the Revenue Administration Act, 2016 (Act 915).
Addressing the media in Accra, the legislator argued that while the law has strengthened the authority of the Ghana Revenue Authority, its implementation has created unintended burdens for taxpayers and businesses. He warned that the current framework risks discouraging voluntary compliance and weakening confidence in the tax system.
Mr Boamah identified what he termed a “Revenue-Penalty Trap,” citing high interest rates—pegged at up to 125 per cent of the Bank of Ghana’s Monetary Policy Rate—monthly compounding of interest, and the retrospective application of penalties as key concerns. According to him, when combined with prolonged audit processes, these measures often result in liabilities that far exceed the original tax owed.
He further alleged misconduct by some tax officials, claiming instances of harassment and extortion targeting struggling businesses. Such practices, he said, undermine the integrity of the tax system and create a hostile environment for investment.
The MP is therefore urging the Finance Ministry to undertake immediate policy and legislative reforms to ensure fairness, transparency, and sustainability in tax administration, warning that failure to act could negatively impact economic growth and private sector confidence.
