Ghana Steps Up Reforms to Address Revenue Leakages in Tax Exemption System

Ghana’s Deputy Minister for Finance, Hon. Thomas Ampem Nyarko, has reaffirmed the government’s commitment to overhauling the country’s tax exemptions regime, citing it as a major source of revenue loss that needs urgent reform. Speaking at a high-level engagement with a visiting delegation from the South Sudan Revenue Authority (SSRA), Hon. Nyarko underscored the need for enhanced domestic resource mobilization amid declining international aid and donor support.

The South Sudanese delegation, led by the Deputy Commissioner of the SSRA, is on a learning mission in Ghana to understudy the West African country’s tax exemptions framework—an area that Ghana has been actively reforming in recent years to improve fiscal performance and governance.

Tightening the Leaks in the Tax System

In his address, Hon. Ampem Nyarko stressed that while tax exemptions can serve as vital instruments for attracting foreign direct investment and incentivizing critical sectors such as health, agriculture, and manufacturing, the long-standing abuse of these provisions has caused significant losses to the national treasury.

“Our exemptions regime has been abused, and so we are doing a lot to tighten it up,” he said. “Government has taken steps to close loopholes and improve transparency around how exemptions are granted and managed.”

He highlighted that the government’s objective is not to abolish tax exemptions entirely but to create a system that is balanced, fair, and resistant to misuse. This includes implementing legal reforms, enhancing oversight, and introducing digital tools to monitor and evaluate exemption requests and approvals more effectively.

Domestic Revenue: A Critical Lifeline

The Deputy Minister lamented the declining inflow of international aid and grants, which have historically supplemented Ghana’s budget. “We are not getting the aid and grants we used to get, and it’s important that we look within to make sure we can raise enough,” he noted.

As part of its broader domestic revenue mobilization agenda, the government is also reviewing other tax policy instruments, strengthening tax administration, and improving compliance to meet rising expenditure demands, especially in infrastructure, health, and education.

Learning from Ghana’s Experience

The South Sudanese delegation expressed deep interest in Ghana’s tax exemption reforms, noting that they had received positive feedback about the progress Ghana has made in addressing inefficiencies and ensuring better governance.

“We are here to learn from Ghana’s experience because your reforms are being recognized across the continent,” said the Deputy Commissioner of the SSRA. “The knowledge we gather from this visit will significantly inform our own approach as we develop our tax exemption policy back home.”

The visit is part of a broader South-South cooperation initiative aimed at promoting the exchange of knowledge and best practices among African nations, particularly in the area of domestic resource mobilization—a growing priority across the continent in light of shrinking external financing.

Looking Ahead

Ghana’s reforms in the tax exemptions domain are being watched closely by regional and international stakeholders, including development partners and peer governments, who see it as a test case for effective public financial management in developing economies.

As Hon. Ampem Nyarko and his team continue to implement policy changes, there is growing optimism that Ghana will not only plug revenue leakages but also build a more resilient and self-sustaining economy—anchored on fair, transparent, and accountable tax policies.