Ghana's tax revenue jumps to 13.1% of GDP—Deloitte credits better compliance over higher rates

Ghana's non-oil tax revenue has climbed to 13.1% of Gross Domestic Product in 2025, up from 12.6% the previous year, marking a modest but significant shift in how the country is funding its budget. The achievement is particularly noteworthy because it occurred despite the government abolishing several taxes during the same period—a development that professional services firm Deloitte has highlighted as evidence of systemic improvement rather than simply raising the tax burden on businesses.

In its analysis of the 2026 Mid-Year Budget Review, Deloitte noted that whilst total revenue and grants fell marginally short of target in the first half of the year, the quality of the revenue growth tells an encouraging story. The firm credits this performance to three key drivers: improved tax compliance among businesses, better administrative efficiency in revenue collection, and increased use of technology-enabled systems to track and process tax payments.

A shift towards smarter tax collection

For Ghana's business community, this development represents a potential turning point. Instead of expanding the tax net through higher rates or new levies—measures that often deter investment and slow economic activity—the government appears to be achieving growth through better management of existing revenue streams. Deloitte underscores this distinction: "Revenue growth appears to be increasingly driven by improved compliance, administrative efficiency and technology-enabled tax collection rather than higher tax rates. This is a positive development for businesses and investors".

The implication is clear: Ghana can grow its tax base without becoming a less attractive destination for domestic or foreign investment. Technology solutions that make paying taxes simpler, combined with fairer enforcement that closes loopholes, tend to encourage voluntary compliance and reduce the informal economy.

Why it matters for Ghana

Tax revenue is the lifeblood of government spending on infrastructure, healthcare, education and security. However, how that revenue is raised matters enormously for economic growth. High tax rates with poor administration often push businesses underground or overseas; low tax rates with weak enforcement leave gaps that wealthier taxpayers exploit.

Ghana's experience this year suggests a healthier middle path is possible. By focusing on making the tax system work better rather than making it heavier, policymakers have found a way to increase revenue whilst signalling stability to the investment community. This approach also aligns with what the business sector has long advocated.

Deloitte's recommendation is straightforward: continue this trajectory. The firm urges the government to prioritise administrative reforms that broaden the tax base, enhance compliance and plug leakages—for example, by tackling under-invoicing, informal trading and smuggling. "Sustainable increases in Ghana's tax-to-GDP ratio will be achieved more effectively through administrative reforms than through repeated increases in tax rates", Deloitte concluded.

For Ghanaian businesses and policymakers watching the medium-term outlook, the message is that revenue growth and business-friendly policy need not be at odds. The challenge now is maintaining momentum: ensuring that the technology investments and compliance systems that drove this year's gains are sustained and improved, whilst resisting the temptation to solve budget shortfalls simply by raising rates.