Ghana's Tax Justice Coalition pushes government to tighten tax enforcement and review corporate breaks

Ghana's Tax Justice Coalition has intensified calls for the government to overhaul its tax incentive framework and strengthen enforcement mechanisms, warning that unchecked corporate tax breaks are eroding the nation's revenue base at a critical time.

The coalition made these demands during a strategic policy dialogue focused on the 2026 Mid-Year Budget Review, where stakeholders gathered to evaluate the government's fiscal trajectory and push for reforms that could generate additional revenue for public services.

What the Coalition is demanding

The Tax Justice Coalition has highlighted two core concerns. First, they want a comprehensive review of existing tax incentives—including exemptions and holidays granted to various sectors—arguing that many have outlived their original purpose or fail to deliver promised economic benefits. Second, the group is calling for enhanced tax enforcement capacity, suggesting that Ghana is losing significant revenue through weak compliance mechanisms and inadequate auditing of large taxpayers.

These demands reflect broader frustrations within Ghana's civil society about the gap between budgeted revenue and actual collection, a persistent challenge that has hampered government's ability to fund healthcare, education, and infrastructure projects.

Why it matters for Ghana

Ghana's fiscal position has been under strain in recent years, with debt servicing consuming a substantial portion of government revenue. At the same time, the country faces competing demands for investment in education, health systems, and economic development. The Tax Justice Coalition's intervention signals growing concern that the current tax system is unfairly structured, with some corporations and high-net-worth individuals benefiting from generous exemptions while ordinary Ghanaians bear the burden through indirect taxes and reduced public services.

Tax incentives, while intended to attract foreign investment or support local industries, can become inefficient if not regularly reviewed. Ghana has previously grappled with revelations that some incentive schemes deliver minimal returns in job creation or technological transfer relative to their revenue cost. Stronger enforcement, meanwhile, could unlock significant resources—studies have shown that tax compliance gaps in African countries often stem from weak administration rather than low tax rates.

The 2026 budget review represents an opportunity for government to signal commitment to fiscal discipline and fairness. How policymakers respond to these calls will likely influence investor confidence, public trust in government, and the coalition's appetite for further advocacy campaigns.

The broader context

Ghana's tax-to-GDP ratio remains below regional and global averages, limiting fiscal space for development spending. Successive governments have relied on tax incentives to compete for foreign direct investment, particularly in mining, manufacturing, and technology sectors. However, the effectiveness of this strategy has been questioned by economists and development organisations, who argue that transparent, stable tax systems are often more attractive to serious investors than ad-hoc exemptions.

The Tax Justice Coalition's push for reform aligns with recommendations from international bodies and domestic economists who have argued that Ghana needs a more sustainable, progressive tax system. The coalition's engagement in the budget process also reflects a maturing civil society that is moving beyond critique to direct policy influence.