Ghana’s top tax official has issued a rallying cry for citizens to prioritize tax payments, framing compliance as critical to weaning the West African nation off foreign borrowing and stabilizing its debt-laden economy.
Dr. Alex Adomako-Mensah, Commissioner of the Ghana Revenue Authority’s (GRA) Support Services Division, warned that persistent reliance on external loans risks derailing public services and deepening fiscal vulnerabilities.
“A nation dependent on loans mortgages its future,” Adomako-Mensah told *The High Street Journal* in an exclusive interview. “Sustainable growth demands we shift from aid and debt to self-funding through taxes.” His appeal comes as Ghana navigates a $58 billion national debt—nearly 85% of GDP—with interest payments consuming 47% of government revenue in 2023, according to Finance Ministry data.
Decades of deficit spending have left Ghana allocating more funds to service creditors than to healthcare, education, or infrastructure. The country secured a $3 billion IMF bailout in 2023 but faces strict austerity measures, including slashing energy and agriculture subsidies. Adomako-Mensah argues boosting tax compliance could ease these pressures: fewer than 10% of Ghana’s 6 million registered taxpayers actively file returns, leaving an estimated $4.6 billion revenue gap annually.
“Every missed tax payment starves hospitals of equipment, delays roads, and weakens schools,” he said. “Ownership of our development starts with citizens funding it.”
To widen the tax net, the GRA is accelerating digitization efforts, including mandating the Ghana Card national ID as a tax identifier and deploying real-time invoicing systems. Preliminary data shows these measures lifted domestic revenue by 18% year-over-year in Q1 2024. The authority has also intensified audits on high-net-worth individuals and sectors like mining and e-commerce, recovering $92 million in evaded taxes since January.
Critics, however, note persistent challenges: a 2023 Afrobarometer survey found 67% of Ghanaians distrust tax collectors, citing corruption and opaque spending. Adomako-Mensah acknowledged the skepticism but insisted transparency improvements are underway, including public dashboards tracking revenue allocation.
The push aligns with President Nana Akufo-Addo’s “Ghana Beyond Aid” agenda, which aims to phase out external budget support by 2030. Yet economists caution that raising taxes amid a cost-of-living crisis—inflation hit 23.4% in May—could backfire without visible public benefits.
“Compliance requires trust,” said Accra-based economist Naa Ayeley Ardayfio. “Citizens need clarity on how their cedis translate to better services, not just debt relief for bondholders.”
As the GRA expands mobile payment options and community tax clinics, Adomako-Mensah remains adamant: “This isn’t about austerity—it’s about sovereignty. Every taxpayer becomes a stakeholder in Ghana’s resurgence.” With debt restructuring talks ongoing and the IMF demanding higher domestic revenue, the success of his appeal may determine whether Ghana can turn its fiscal tide.
