- Akpeloo criticizes extra levies on compliant businesses
- He calls for expanding the tax base, not new taxes
- He highlights the challenge of taxing informal SMEs
Tsonam Akpeloo, President of the Greater Accra branch of the Association of Ghana Industries (AGI), has criticised Ghana’s tax system, claiming that businesses that diligently follow tax rules often face extra charges instead of being rewarded for their compliance.
Speaking at a post-budget discussion hosted by Lima Partners on Thursday, March 20, 2025, Akpeloo stressed the need for the government to expand the tax base instead of continuously imposing new taxes on businesses that are already compliant.
He expressed concern that this approach discourages tax adherence and places unnecessary financial pressure on businesses trying to follow the law.
“Our position is that we need to make a greater effort to expand the tax base. Currently, the tax-to-GDP ratio is around 13.8%, but we should aim for 18% or even 20%. We must actively ensure that all eligible taxpayers contribute their fair share. What’s happening now is that once a company pays its taxes, it becomes a target for even more charges,” Akpeloo explained.
He pointed out that AGI members, who keep thorough financial records and meet tax obligations, often find themselves burdened with new taxes without sufficient relief.
“If everyone paid their fair share, the burden on compliant businesses would be much lighter,” he added.
Akpeloo also voiced concerns about the efficiency of tax collection systems, especially in the informal sector. He noted that the introduction of the Ghana Card was intended to improve tax compliance, but many businesses and individuals continue to evade taxes.
“We were told the Ghana Card would ensure that every registered individual contributes to the tax system, but I don’t think this has happened. We need to use technology more effectively to track and collect taxes,” he urged.
He also highlighted the difficulties of taxing the informal sector, noting that many small and medium-sized enterprises (SMEs) generate significant income but remain outside the tax system.
“The informal sector is challenging and hard to regulate. Many SMEs make considerable profits, but they are not taxed properly. Ignoring this issue is not an option. We need innovative solutions to integrate them into the tax system,” Akpeloo concluded. His comments reflect the growing frustration among businesses that feel penalized for complying while a large portion of the economy remains untapped for tax revenue. As Ghana seeks economic stability, the demand for a fairer, more comprehensive tax system is likely to grow.
