Ghana’s reliance on taxing salaried employees while overlooking the affluent has come under sharp critique from economist Prof. Godfred Bokpin, who argues that the current system entrenches inequality.
Speaking on Joy FM’s Super Morning Show, the University of Ghana Business School finance professor highlighted the disproportionate burden shouldered by formal-sector workers and businesses, while high-net-worth individuals—whose incomes often stem from investments, capital gains, or untaxed assets—contribute far less proportionally.
“The wealthiest Ghanaians don’t depend on salaries, yet our tax structure remains fixated on personal income tax,” Prof. Bokpin stated. “This mismatch means ordinary workers bear the brunt, while those with the greatest capacity to pay exploit gaps in the system.” He called for a comprehensive policy overhaul to ensure the wealthy pay their fair share, emphasizing that stagnant wages and rising living costs make the status quo unsustainable for low- and middle-income earners.
Though he acknowledged incremental efforts by the Ghana Revenue Authority’s (GRA) High Net Worth Office—a unit tasked with monitoring tax compliance among the elite—Bokpin stressed that systemic flaws persist. “Without robust policies and enforcement mechanisms, we’re essentially subsidizing inequality,” he said.
The debate reignites long-standing concerns about tax equity in Ghana, where indirect taxes like VAT disproportionately affect lower-income groups. Critics argue that loopholes enabling tax avoidance for the wealthy—such as underreporting business profits or undervaluing assets—remain pervasive. A 2022 World Bank report noted that Ghana’s tax-to-GDP ratio lags behind regional peers, partly due to inefficiencies in capturing non-salary income.
Economists warn that failing to address these gaps could stifle economic growth. “When workers are overtaxed, consumer spending dwindles, hurting SMEs and broader development,” said Accra-based analyst Kwame Owusu. “Conversely, redirecting the burden could free up disposable income for millions and fund critical infrastructure.”
The government has yet to respond to Bokpin’s proposals, though Finance Ministry insiders hint at ongoing reviews of tax exemptions and asset declaration protocols. Meanwhile, public frustration simmers. “We’re taxed on every paycheck, yet the rich hide their money,” said Kofi Mensah, a teacher in Kumasi. “It’s time for fairness.”
As Ghana grapples with economic recovery and debt restructuring, Prof. Bokpin’s appeal underscores a pressing question: Can the nation afford to let its wealthiest citizens opt out of fiscal responsibility? The answer may define its path to equitable growth.
