Kofi Ahovi

  Ghana’s Finance Ministry has revealed that the country lost GHȼ4.6 billion to tax expenditures in 2023—a 4.2% drop from the GHȼ4.8 billion recorded in 2022. While the decline suggests a modest improvement, the scale of these exemptions—particularly import waivers—continues to raise concerns about Ghana’s fiscal health and revenue mobilization efforts. Where Did the Money Go? Tax expenditures refer to revenues forgone due to preferential tax treatments. In Ghana, these typically include exemptions on domestic taxes and import duties. In 2023, import exemptions dominated, accounting for GHȼ3.5 billion—or 77% of the total. Domestic indirect tax exemptions amounted to GHȼ809 million, while domestic direct tax exemptions were GHȼ264 million. Import exemptions have steadily increased, rising from GHȼ2.4 billion in 2021 to GHȼ3.5 billion in 2023. The largest share came from parliamentary exemptions, which totalled GHȼ1.7 billion—representing 37% of all tax expenditures and nearly half o...

FOUR major groups in the agricultural sector have expressed concerns about the delay by the Finance Minister in granting tax exemptions on agricultural commodities. The request to that effect by the Minister of Food and Agriculture was meant to make agricultural products cheaper and ensure food security. The entities are the members and managers of CropLife Ghana, the Chamber of Agribusiness Ghana,the Peasant Farmers Association of Ghana (PFAG) and the National Seed Trade Association of Ghana (NASTAG). They said the delay had dire consequences for the sector which was already fragile due to global prices and increases in agricultural machinery and agro-inputs. The phenomenon could lead to high cost of production and further worsen the food security situation in the country. At a news conference called by the four groups in Accra, the Executive Director of the Peasant Farmers Association of Ghana (PFAG), Dr Charles Nyaaba said, “most farmers in 2022 produced at a loss; some had to scale...

  The Minister of Finance, Ken Ofori-Atta, has confirmed that the country lost about GH¢27 billion to tax exemptions granted some businesses between 2008 and 2020. The amount translates to about GH¢2.2 billion surrendered in tax waivers each year for the 12-year period. Addressing Parliament last Friday, the Finance Minister also said since 2008, it was only in 2020 that the lost revenue declined to about GH¢1.8 billion. It is true, as Ranking Member mentioned, that some GH¢27 billion had been lost to tax exemptions. “This brings into focus the need for all of us to protect the public purse. That is an important social re-engineering for us, as we lose revenue on many fronts,” he said. “However, for this year, Ghana will likely make some savings of GH¢460 million on tax exemptions,” Ofori-Atta added. Motion The minister gave the confirmation after a Deputy Minister of Finance, Abena Osei-Asare, had moved a motion for the second reading of the Tax Exemptions Bill, 2020. The bill, wh...