Ghana’s Tax System Encourages Evasion, Enriches a Few – ISSER Director
On May 28, 2025, Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), highlighted concerns over Ghana's current tax system. He stated that the structure encourages tax evasion and disproportionately benefits a select few, particularly within the informal sector. BackgroundSpeaking at the Graphic Ecobank Economic Forum, Prof. Quartey emphasized that the imposition of high taxes on businesses and individuals, aimed at achieving revenue targets, has inadvertently led to increased tax evasion. He pointed out that the Value Added Tax (VAT) system, with rates exceeding 21%, places a significant burden on businesses and consumers, especially when compared to neighboring countries with VAT rates averaging between 15% and 18%. Key Issues Identified High Tax Rates: The elevated VAT rates and other levies have made compliance challenging, prompting many to evade taxes. Informal Sector Challenges: With over 80% […]