The Minister of Gender, Children and Social Protection, Dr Agnes Naa Momo Lartey, says while reforms of raising the tax-free thresholds are compelling in principle, the practice must be weighed carefully against what the State can sustain.
She said this should not mean that the concerns raised in a recent study on Ghana’s Personal Income Tax-Free Threshold about fairness, inclusive, and gender equity in the Ghanaian tax system should be dismissed.
“On the contrary, the study calls for measured face responses – what can be adjusted in the short-term to ease the burden on vulnerable groups, while ensuring public finance remains stable enough to support essential services,” she stated in an address at the National Tax Forum 2025 on Wednesday in Accra on the theme: “Tax Policies for Social Protection.”
It was organised by the Revenue Mobilisation Africa (RMA), which is spearheading an initiative of the Promoting Tax Equity in Ghana Project (PROTEG).
The Minister said, “We must be honest with ourselves, the government faces fiscal challenges, as school feeding and the Livelihood Empowerment Against Poverty (LEAP) are heavily spending areas when it comes to social protection.
“Yet revenue remains constrained and debt servicing obligations consume a significant share of the budget.”
Dr Lartey said that despite the challenges, the government led by President John Dramani Mahama had shown that even in tough times, investment could be made to improve lives.
“This year the government increased the allocation of the LEAP programme to GHS 953 million from GHS 720 million in 2024, and this is to expand the coverage from 350,580 to 400,000 vulnerable household beneficiaries nationwide,” she said.
The Technical Advisor to the Commissioner General of the Ghana Revenue Authority, Mrs Elsie Appau-Klu, in a speech, called on Ghanaian citizens and residents to consider the payment of taxes as an obligation for the fulfillment of national development.
She said by so doing, they would have the moral courage to call for accountability of the usage of the taxes, adding that their little contributions would significantly help in the provision of educational facilities, health, and road infrastructure.
Queen Mother of Dodowa and the Chairperson of the occasion, Manye Naki Azangma, said Ghanaians took pride in their rich history, diverse cultures, and as resilient people.
“However, our tax system often perpetuates inequality, hindering collective progress,” she stated.
She said tax equity ensured that everyone contributed their fair share to the national coffers, and it was about creating a system where the wealthy and large corporations do not exploit loopholes, while the vulnerable and small businesses bear an unfair burden.
Manye Azangma said, “In Ghana, we have a significant gap between the rich and the poor. Our tax system should bridge this gap, not widen it. We need a more progressive tax system, where those who have enough contribute more.”
She said, for that matter government needs to simplify the tax laws and regulations, making it easier for small businesses and individuals to comply.
“Secondly, we need to close tax loopholes and eliminate exemptions that benefit only a few, while transparency and accountability in tax collection and utilisation must be increased.
She added, “We need to educate and engage citizens on tax equity, promoting a culture of tax compliance and social responsibility.”
“Let us work together to build a fairer tax system, where everyone contributes their fair share. A system that promotes economic growth, reduces inequality, and enhances the well-being of all Ghanaians,” the Queen Mother urged.
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