The Ghana Revenue Authority (GRA) has shattered expectations in 2024 by surpassing its revenue target, collecting an impressive GH₵153.5 billion.
This achievement marks a GH₵7.5 billion surplus over the targeted GH₵145.9 billion, reflecting a 5.3 percent increase. It also represents a remarkable 35 percent nominal growth compared to 2023, highlighting the GRA’s effectiveness in revenue mobilization and tax compliance enforcement.
The GRA’s ability to exceed its target underlines the authority’s enhanced efficiency, policy-driven revenue streams, and robust tax collection systems. The total revenue mobilized for the year reached GH₵157.9 billion when additional levies such as the Sanitation Debt Recovery Levy, Energy Sector Debt, and the Sanitation and Pollution Levy were accounted for. This historic performance underscores the GRA’s pivotal role in Ghana’s economic sustainability.
The GRA’s impressive performance was driven by significant growth in both domestic revenue and customs collections. Domestic revenue recorded a robust growth rate of 31.6 percent, while customs revenue soared by 47.0 percent, demonstrating the GRA’s improved operational strategies.
Several tax handles contributed to the GRA’s success in 2024. Corporate Tax, for instance, emerged as a standout performer, with collections reaching GH₵38 billion against the targeted GH₵30 billion. This overachievement highlights the resilience of Ghanaian businesses despite a challenging economic environment and the authority’s determination to ensure compliance.
Mineral Royalties also exceeded expectations, contributing GH₵5.2 billion compared to the initial target of GH₵3 billion. The airport tax, another strong performer, brought in GH₵1.6 billion, surpassing its target of GH₵1.3 billion. These surpluses collectively contributed to the GRA’s record-breaking achievement.
Beyond individual tax handles, the authority’s aggressive push for compliance played a pivotal role. Enhanced audit mechanisms, public sensitization campaigns, and strategic partnerships with stakeholders allowed the GRA to maximize its revenue collection potential.
Performance of E-Levy and COVID-19 Levies
While the overall revenue performance exceeded expectations, some tax categories fell short of their targets. The Electronic Levy (E-Levy), for instance, generated GH₵2 billion in revenue, slightly below the projected GH₵2.1 billion. Similarly, the COVID-19 Health Recovery Levy (Flat Rate) brought in GH₵86 million compared to its target of GH₵128 million, while the Standard Rate generated GH₵2.7 billion against the anticipated GH₵4.2 billion.
These shortfalls highlight the need for further refinement in the implementation and enforcement of such levies. Nevertheless, their contributions added significant value to the overall revenue mobilization efforts.
The GRA’s achievement in 2024 can be attributed to several strategic initiatives and policy reforms. Firstly, the introduction of digital platforms for tax filing and payment simplified the tax process for individuals and businesses, improving compliance and reducing leakages.
Additionally, the authority’s focus on capacity building and staff training ensured a more efficient workforce equipped to handle the complexities of modern tax administration. Enhanced collaboration with stakeholders, including businesses and financial institutions, also fostered a culture of compliance and trust.
The inclusion of new revenue streams, such as the Sanitation and Pollution Levy and Energy Sector Debt Levy, further boosted collections. These policy-driven measures demonstrated the government’s commitment to diversifying revenue sources and addressing critical national challenges.
Economic Implications of the Record-Breaking Revenue
The GRA’s record-breaking revenue performance has significant implications for Ghana’s economy. By exceeding its revenue target, the authority has provided the government with additional fiscal space to invest in critical sectors such as education, healthcare, and infrastructure.
The surplus revenue can also help reduce Ghana’s dependence on external borrowing, easing pressure on the national debt and strengthening the country’s financial stability. Furthermore, the success of domestic revenue mobilization underscores the potential for Ghana to achieve greater economic self-reliance through effective tax administration.
While the GRA’s performance in 2024 is commendable, sustaining this momentum will require continuous innovation and vigilance. Strengthening compliance mechanisms, addressing leakages, and refining underperforming tax handles such as the E-Levy and COVID-19 levies should remain priorities.
Expanding the tax base is another critical area of focus. Bringing the informal sector into the tax net and leveraging technology to track economic activities can further enhance revenue mobilization. Additionally, fostering a culture of tax compliance through public education and stakeholder engagement will be crucial in maintaining the GRA’s success.
The Ghana Revenue Authority’s achievement in 2024, collecting GH₵153.5 billion and exceeding its target by GH₵7.5 billion, is a testament to its efficiency, innovation, and commitment to excellence. With domestic revenue and customs collections driving significant growth, the GRA has set a benchmark for revenue mobilization in Ghana.
As the authority continues to refine its strategies and expand its reach, it is well-positioned to support the government’s developmental agenda and contribute to Ghana’s economic transformation.
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