The Ghana Revenue Authority (GRA) has achieved a remarkable milestone by surpassing its 2023 tax revenue target, recording a total collection of GH¢113.06 billion compared to the revised target of GH¢109.19 billion. This outstanding performance reflects a significant nominal growth rate of 49.3 percent, surpassing the expected growth rate of 44.2 percent based on the 2022 fiscal year.
Originally tasked with collecting GH¢106 billion for the 2023 fiscal year, the target was later revised to GH¢109.19 billion in the Mid-Year Budget, signifying a 3 percent upward adjustment. The achieved growth rate of 49.3 percent marks the highest in the last twenty years, accompanied by the highest tax-to-GDP ratio of 14.1 percent in the past six years.
In an exclusive interview, Commissioner-General of GRA, Rev. Dr. Ammishaddai Owusu-Amoah, expressed his satisfaction with the outstanding performance, highlighting a year-on-year growth of 49.3 percent as unprecedented. The domestic tax revenue, contributing 73 percent of the total revenue, recorded an impressive 54 percent growth, while customs-related tax revenue increased by 38.2 percent, contributing 27 percent to the total.
The Commissioner-General attributed the stellar performance to various factors, including intensified compliance activities, increased Corporate Income Tax (CIT) payments from banks, growth in revenue from 1 percent withholding tax at ports, and effective measures against under-valuation and misdescription of goods by the Customs Division.
Rev. Dr. Owusu-Amoah acknowledged the significant role played by major mining firms, which saw a 39.6 percent growth in their total contribution to CIT, reaching GH¢6,135.80 million in 2023. The favorable gold prices and the 40 percent depreciation of the cedi contributed to the mining sector’s robust performance.
Domestic VAT achieved a record year-on-year growth of 61.9 percent, falling just short of its target by 9.9 percent. The passage of the upfront VAT payment Act in May 2023 contributed to this growth, roping in GH¢173.89 million. Import VAT exceeded its target by 3.5 percent, recording a growth of 53.3 percent, while the newly introduced E-Levy registered an impressive year-on-year growth of 85.7 percent.
The Commissioner-General expressed gratitude to the dedicated staff, taxpayers, and stakeholders for their contributions to this success. He urged eligible individuals and businesses to continue contributing their fair share to Ghana’s socio-economic development. The GRA has committed to expanding tax efforts with initiatives outlined in the 2024 Budget Statement, engaging stakeholders for smooth implementation.