Ghana VAT reform faces criticism as revenue shortfalls widen fiscal gap

Critics argue the tax system remains structurally flawed, complicating efforts to reduce borrowing for critical national programs.

By Handelsavisen Newsroom · Automated 2026-07-23 13:57 UTC · 1 min read

Ghana’s value-added tax framework is under renewed scrutiny following claims that the system has not been optimized to generate sufficient state revenue.

Professor Peter Quartey, former director of the Institute of Statistical, Social and Economic Research (ISSER), stated that the VAT structure has not been perfected to meet the country's fiscal needs.

The critique arrives as the government continues to rely heavily on borrowing to finance essential services, including education.

Persistent revenue shortfalls have widened the fiscal gap, forcing Accra to turn to debt markets to cover budget deficits.

This reliance on external financing underscores the urgency of effective tax collection mechanisms.

Structural challenges in revenue collection remain a significant hurdle for Ghana’s fiscal policy.