The World Bank has projected a potential economic windfall for Ghana if the country fully embraces modern, integrated tax systems and implements the revenue measures outlined in the 2025 budget.
According to its latest Ghana Economic Update report, the successful execution of these reforms could boost government revenue by at least 0.6% of Gross Domestic Product (GDP) in 2025, strengthening the nation’s fiscal stability.
The report highlights that the projected 0.6% GDP increase in revenue is achievable if Ghana moves decisively on tax administration reforms. This would involve enforcing the tax exemption law, developing a comprehensive tax expenditure register, and rolling out integrated digital platforms to streamline tax collection and management.
World Bank Country Director Robert Taliercio, speaking at the report’s launch in Accra, stressed that these measures are not just technical adjustments but strategic shifts that could transform Ghana’s revenue mobilisation framework. He noted that the reforms align with the targets of the IMF-supported Extended Credit Facility (ECF) programme, which seeks to restore macroeconomic stability while creating fiscal space for development.
The Power of Integration
At the core of the World Bank’s recommendations is the deployment of the Integrated Tax Administration System (ITAS). The system is designed to unify tax collection processes, enhance compliance monitoring, and reduce revenue leakages.
“Integrating tax systems is not merely about technology; it is about transparency, efficiency, and accountability,” Taliercio said.
“When the Ghana Revenue Authority (GRA) has the tools to conduct risk-based audits and monitor transactions in real-time, the government can broaden the tax base without overburdening compliant taxpayers.”
World Bank
By linking taxpayer information across platforms, ITAS will make it easier to detect evasion, close loopholes, and ensure that every eligible entity contributes to national revenue.
Beyond Tax: Public Financial Management Reforms
The World Bank emphasised that tax system improvements should go hand-in-hand with robust public financial management (PFM) practices. It urged Ghana to fully adopt the Ghana Integrated Financial Management Information System (GIFMIS) and the Ghana Electronic Procurement System (GHANEPS) across all ministries, departments, and agencies (MDAs), as well as metropolitan, municipal, and district assemblies (MMDAs).
Additionally, the Bank recommended integrating all government spending accounts into the Treasury Single Account (TSA) to centralise cash management, reduce waste, and improve expenditure control.
“These systems, when fully operational, will ensure that every cedi collected is effectively tracked and spent where it matters most.”
World Bank
Closing the Tax Gap
A recurring challenge for Ghana has been its narrow tax base, with significant revenue lost through exemptions, informal sector leakages, and weak enforcement. The World Bank believes that enforcing the tax exemption law could significantly reduce these losses. Establishing a tax expenditure register would also make it easier to assess the cost and effectiveness of exemptions granted.
Moreover, risk-based audits, enabled by integrated digital systems, would allow the GRA to focus resources on high-risk taxpayers rather than conducting broad, resource-intensive checks. This targeted approach is expected to yield higher compliance rates and better revenue outcomes.
Meanwhile, the World Bank emphasized that modernising tax administration and PFM systems is not only about immediate revenue gains but about securing long-term fiscal stability.
The projected GDP revenue boost may seem modest at 0.6%, but in a $77 billion economy, this represents hundreds of millions of dollars that could be channelled into infrastructure, education, health, and other critical sectors.
The integration of ITAS, GIFMIS, GHANEPS, and the TSA will also improve Ghana’s attractiveness to investors by signalling a commitment to transparent and efficient financial governance.
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