Yaw Appiah Lartey raises concerns over Ghana’s reliance on tax revenue

Financial analyst Yaw Appiah Lartey has voiced concerns about Ghana’s dependence on tax revenue and the challenges posed by removing taxes such as the COVID-19 tax and electronic levy (e-levy).

Speaking on Morning Starr, he urged the government to explore alternative revenue sources, including renegotiating the International Monetary Fund (IMF) program to support the budget.

Lartey pointed out that 77% of Ghana’s total revenue is derived from taxes and warned that any reduction in taxes would create a financial gap that must be filled with new policies, particularly from non-tax sources.

While he acknowledged the importance of increasing national productivity, he expressed concerns that the finance minister-designate’s efforts on non-tax revenues had been unconvincing.

He warned that Ghana could end up simply replacing one tax with another without addressing the structural revenue gaps in a sustainable way.