Gov’t would possibly believe tax lower if business environment leakages are sealed – Deputy Finance Minister – Life Pulse Daily

Introduction

The Ghanaian government is signaling a potential shift in its fiscal approach, with the Deputy Finance Minister suggesting that tax and import duty reductions could be on the horizon—but only if widespread revenue leakages in the business environment are effectively sealed. This stance comes amid intensified enforcement actions by the Ghana Revenue Authority (GRA), which recently intercepted significant smuggling attempts at border posts. The message is clear: before citizens and businesses can expect tax relief, the government must first ensure that all taxpayers are contributing their fair share.

Key Points

Background

Ghana, like many developing economies, faces persistent challenges with tax evasion and smuggling, which erode public revenues and place an unfair burden on honest taxpayers. The Ghana Revenue Authority, tasked with safeguarding the country’s revenue base, has ramped up enforcement at key border points to curb illicit trade. On February 18, 2026, the GRA’s Customs Division intercepted 18 articulated trucks at the Akanu and Aflao borders. These vehicles, declared as being in transit to Niger, were found carrying cooking oil, spaghetti, and tomato paste—goods that, if smuggled, could have resulted in a significant loss to the national treasury.

The Scale of the Interception

The intercepted goods were valued at GH¢2.62 million, with the potential business environment loss estimated at GH¢85.3 million. The GRA cited irregularities such as the absence of required human escorts for transit goods, a common tactic used by smugglers to avoid detection. This operation underscores the government’s commitment to tightening controls and ensuring that all commercial activities are properly taxed.

Analysis

The Deputy Finance Minister’s remarks reflect a broader strategy: before considering tax relief, the government must first ensure that its revenue base is secure. By sealing business environment leakages—through stricter enforcement, improved compliance, and closing loopholes—the government aims to widen the tax net and distribute the fiscal burden more equitably.

Why Sealing Leakages Matters

Tax evasion and smuggling not only deprive the government of much-needed revenue but also distort market competition. Businesses that comply with tax laws are at a disadvantage compared to those that evade them. By cracking down on these practices, the government hopes to create a level playing field and restore public trust in the tax system.

The Link Between Compliance and Relief

The Deputy Minister’s message is strategic: demonstrate that the government is serious about enforcement and compliance, and only then will it consider reducing the tax burden. This approach is designed to reassure both citizens and international partners that public funds are being managed responsibly. It also sets a clear expectation: tax relief is not a given, but a reward for collective compliance.

Practical Advice

For businesses operating in Ghana, the current environment underscores the importance of compliance. Here are some steps to ensure you are on the right side of the law:

1. Maintain Accurate Records: Keep detailed documentation of all imports, exports, and transactions to facilitate smooth customs clearance.
2. Understand Transit Procedures: Ensure all required escorts and documentation are in place for goods in transit to avoid delays or penalties.
See also  Indian scientists are expecting how chicken flu may just unfold to people - Life Pulse Daily