Deputy Minister for Finance, Thomas Ampem Nyarko, has underscored the government’s commitment to tightening loopholes within Ghana’s tax exemptions regime, describing it as a major source of revenue loss for the country.
He made the remarks when he met with a delegation from the South Sudan Revenue Authority, led by the institution’s Deputy Commissioner, who are in Ghana to understudy the country’s tax exemptions framework.
Hon. Ampem Nyarko explained that with dwindling aid and grants, it has become even more critical for Ghana to look inward and maximize domestic revenue mobilization.
“We are not getting the aid and grants we used to get, and it’s important that we look within to make sure we can raise enough,” he stated.
He noted that while tax exemptions themselves are not inherently bad, as they can be necessary policy tools to attract investment and support key sectors, the real problem has been the persistent abuse of the system over the years.
“Our exemptions regime has been abused, and so we are doing a lot to tighten it up. Government has taken steps to close loopholes and improve transparency around how exemptions are granted and managed,” the Deputy Minister emphasized.
On their part, the visiting delegation from South Sudan said they chose to come to Ghana because of the positive reports they have received about the country’s ongoing reforms in tax exemptions.
They noted that the insights gained from their engagements would be invaluable as South Sudan drafts its own tax exemptions policy framework.
