Benaiah Nii Addo
The Executive Director of Green Tax Youth Africa (GTYA), Benaiah Nii Addo, has commended the Ministry of Finance and the Ghana Revenue Authority (GRA) for their bold and strategic efforts in addressing Ghana’s long-standing revenue mobilisation gap in the informal sector.
He said with over 80% of the country’s revenue potential tied to this segment, the new measure, if properly executed and supported, can transform Ghana’s fiscal space and development trajectory.
Mr. Addo described the move as “timely and progressive,” noting that it reflects a strong governmental response to long-standing calls from stakeholders to innovate and widen the tax net for more equitable and inclusive domestic resource mobilisation, which must have a reflex return of easing the burden on the formal sector class.
“This policy direction is a step in the right direction. The informal sector remains the bedrock of Ghana’s economy and revenue potential. Strengthening tax compliance in this space can significantly close the fiscal gap and drive inclusive development,” said Mr. Addo.
GTYA, meanwhile, urged the government to complement these efforts with critical macroeconomic reforms to shield low-income groups, particularly youth and women, from worsening inequality. Mr. Addo drew attention to recent utility price hikes and rising fuel costs, which disproportionately burden lifeline consumers and undermine household resilience.
He called on the Public Utilities Regulatory Commission (PURC) and the government to revise the quarterly electricity increment mechanism, which has deepened the inequality gap and affected lifeline consumers, especially in low-income communities.
“Rising fuel prices, caused by excessive taxes and levies, have cascading effects on transport, commodities, and service delivery. GTYA proposes capping all fuel-related levies and taxes at GH¢1.50 at the pumps on what is already being implemented to provide financial relief and allow citizens to share in Ghana’s oil wealth benefits,” he said.
He further called on the government to recover every cedi corruptly taken by politically exposed persons and public officials whose unexplained wealth suggests misuse of state resources.
“Ghana loses billions annually through corporate tax evasion, transfer pricing manipulation, and other illicit outflows. The government must strengthen regulatory and tax administration systems, increase transparency in beneficial ownership, and ensure strict penalties for multinational tax abuse,” Mr. Addo said.
GTYA also advocated for progressive taxation policies that target high-net-worth individuals, including levies on private jet owners, premium flight travellers, and cargo shipping lines, aligning with proposals from the Financing for Development Conference in Seville, Spain, on June 30, 2025.
“These ‘green taxes’ can fund climate adaptation and innovation initiatives while ensuring fiscal equity,” he said.
Mr. Addo concluded by urging civil society organisations (CSOs), academia, private sector leaders and international development partners to support the government in building a more equitable and resilient fiscal framework, grounded in justice, efficiency, and sustainability.
“The true measure of sound economic policy is its impact on the pockets of ordinary people. If citizens do not feel relief within six months of implementation, we must return to the table and revise our strategies. Ghana must rise to the moment,” Mr. Addo stated.