GTYA Applauds Informal Sector Tax Strategy, Pushes for Broader Economic Reforms
The Executive Director of Green Tax Youth Africa (GTYA), Mr. Nii Addo Benaiah, has lauded the Ministry of Finance and the Ghana Revenue Authority (GRA) for their renewed efforts to improve revenue mobilisation within the informal sector. He described the initiative as a bold and progressive step towards addressing Ghana’s long-standing fiscal imbalance.
According to Mr. Benaiah, the informal sector holds more than 80% of Ghana’s untapped revenue potential. Therefore, he believes the government’s latest strategy—if implemented effectively and inclusively—can reshape the country’s economic future.
“This policy direction is timely and much needed,” he remarked. “The informal sector remains the backbone of Ghana’s economy. Enhancing tax compliance within this segment can significantly close the fiscal gap and ensure more inclusive development.”
Call for Complementary Macroeconomic Reforms
While commending the move, GTYA is also urging the government to take further steps to protect low-income earners—especially women and the youth—who bear the brunt of economic inequality.
Mr. Benaiah highlighted the compounding effects of rising utility tariffs and fuel prices, which he said are eroding household resilience, particularly among vulnerable populations.
GTYA’s Key Policy Recommendations
GTYA outlined a series of economic policy reforms aimed at strengthening fiscal equity and protecting the vulnerable:
1. Review Utility Pricing:
GTYA is calling on the Public Utilities Regulatory Commission (PURC) and the government to reconsider the quarterly utility tariff adjustments, which disproportionately affect lifeline consumers in low-income communities.
2. Cap Fuel Taxes:
With fuel prices soaring due to excessive levies, GTYA proposes capping all fuel-related taxes and levies at GH¢1.50 per litre. This would provide much-needed relief and allow citizens to enjoy the benefits of Ghana’s oil resources.
3. Recover Stolen State Funds:
The organization demands that the government recovers funds misappropriated by politically exposed persons and public officials. These resources, GTYA argues, should be redirected toward public development projects.
4. Curb Illicit Financial Flows:
GTYA is urging stronger enforcement against corporate tax evasion, transfer pricing manipulation, and other illicit financial practices. The government must tighten regulatory systems, enhance transparency in beneficial ownership, and impose stricter penalties on multinational offenders.
5. Reform Tax Exemptions:
The group warned against the continued loss of national revenue through tax holidays and exemptions granted to foreign corporations. GTYA recommends linking any exemptions to measurable socio-economic outcomes such as job creation, local content, and skills development.
6. Address the Cost of Living:
With Ghana ranked as the 12th most expensive country in Africa, GTYA is calling for urgent measures to address the high cost of utilities, rent, food, and transportation.
7. Implement Progressive Green Taxes:
To achieve fiscal equity and support climate financing, GTYA advocates for taxes on high-net-worth individuals, including levies on private jet owners, premium class travelers, and large shipping lines. These proposals align with global discussions at the recent Financing for Development Conference in Seville, Spain.
Call to Action
Mr. Benaiah called on civil society organizations, academia, the private sector, and international partners to support the government in building a fairer and more sustainable fiscal framework.
“The true measure of sound economic policy is its impact on the everyday lives of Ghanaians,” he emphasized. “If citizens do not experience relief within six months of implementation, we must revisit and revise our strategies. Ghana must rise to meet this challenge.”
