Commissioner-General of the Ghana Revenue Authority (GRA), Anthony Kwasi Sarpong, has revealed that the recent sharp rebound of the cedi has significantly reduced government revenues, but expressed confidence that reforms and new measures will restore growth before the end of the year.
Speaking on Joy News’ PM Express Business Edition on Thursday, August 21, Mr. Sarpong explained that the cedi’s appreciation from 15 to about 10.5 to the dollar in just three months has led to a 30 per cent revenue loss, especially at the ports.
“If you look at the duties at the port, they are denominated in foreign currency, mostly in USD. And therefore, once the exchange rate, which is overall good for the economy, dropped from 15 to about 10.5, that’s a 30% sharp drop in cedi terms. So obviously, in a split of three months, what comes to you drops by 30%,” he said.
Despite the setback, the GRA boss noted that the lower exchange rate would eventually stimulate trade and imports, restoring revenues. “We are confident that because the rates are lower and the rates have come down, importers can import more. One, the amount of dollars they need is more because they are using fewer cedis to get the dollars, so they can import more… and we will regain the taxes from there.”
Mr. Sarpong further disclosed that other key sectors, including the extractive and upstream petroleum industries, had also been affected due to their dollar-denominated taxes. However, he stressed that the impact was temporary and would be offset by stability and future growth.
Modified Taxation and Revenue Expansion
Highlighting reforms, Mr. Sarpong announced that the GRA will roll out a modified taxation system within a month to expand the tax base, particularly among Micro, Small, and Medium Enterprises (MSMEs).
“For example, if you are doing a business and your turnover is 200,000 a year, we are saying just pay 3% of that… It is estimated that we have over 5 million such businesses in Ghana. If on average these businesses are paying 5000 a whole year, that is 10 billion. That translates to 1 billion a year with potential to grow,” he explained.
Public Awareness and Tax Education
The Commissioner-General stressed the importance of tax awareness, adding that many Ghanaians still lacked knowledge of their civic duty to pay taxes.
“By next month, we are launching nationwide tax education that we will do continuously, not only as GRA but with other stakeholders… so that people will naturally embrace their tax responsibilities,” he said.
Technology and Digital Enforcement
Mr. Sarpong revealed that technology would be central to Ghana’s revenue strategy, particularly in capturing online and digital transactions.
“Before the end of the year, we are introducing a digital technology such that transactions that are taking place online, we have visibility of it. We can see the amount of value of the transaction taking place, and also importantly, deduct the tax component at the point of payment. This is going to be a game changer,” he confirmed.
For him, although the cedi’s rebound has caused a short-term revenue dip, a combination of tax reforms, expanded education, and digital enforcement will strengthen the tax system and keep Ghana’s finances on track.
