Tax analyst, Francis Timore Boi says domestic revenue mobilisation will have to anchor Ghana’s fiscal strategy once the IMF programme concludes next year.
He warns that without a stronger push to bring the informal sector into the tax net, the economy could face renewed pressures when external support ends.
Francis Timore Boi spoke to Citi Business News on the sidelines of the Media Foundation for West Africa’s Tax Dialogue, which focused on measures to boost Ghana’s domestic revenue performance.
“If IMF exits in 2026 May, it is even the most important reason why we need to focus on domestic revenue. The $360 million is not going to come anymore. So, I think the Minister of Finance is much aware of this one and that is why he has embarked on this reform. If we are unable to raise more revenue to cushion ourselves and the little shock that comes, we are back to our knees again.
“You cannot run an economy like that. Domestic revenue modernization is very critical especially when IMF is going to exit. I think that revenue mobilization is a cornerstone immediately IMF exits. Otherwise, anything that happens to our economy in terms of global shocks can again bring us down as it did when COVID struck in 2020,” he said.
Acting Head of Strategy and Research at the Ghana Revenue Authority, Dominic Naab also speaking to the media expressed optimism that planned VAT reforms will help expand the tax base and bolster revenue in the coming year with compliance.
“Some businesses are not able to calculate it [current VAT regime] and creates problem with tax compliance so this new VAT we are going to start from January 1, 2026 is a novelty. It has looked at the challenges of this one and has improved upon it,” he added.
Finance Minister Dr. Cassiel Ato Forson, during the 2026 Budget presentation, announced the abolition of the Covid-19 levy alongside major VAT reforms.
He indicated that the effective VAT rate would be reduced from 21.9% to 20%, the VAT registration threshold raised from GH₵200,000 to GH₵750,000, and the VAT zero-rating on locally manufactured textiles extended to 2028.
Dr. Ato Forson added that scrapping the COVID-19 levy alone will return GH₵3.7 billion to individuals and businesses, while the full set of VAT reforms is expected to provide nearly GH₵6 billion in relief to households and enterprises.
He expressed confidence that these measures will stimulate economic activity, strengthen private sector growth, and ease the burden on Ghanaians facing high living costs.
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