Every pay slip, every imported car and every VAT receipt in Ghana passes through one institution. The Ghana Revenue Authority, created in 2009, collects the bulk of the taxes that fund schools, hospitals, roads and the public service. Before it existed, three separate agencies did the job.
Three agencies become one
Before 2009, income taxes were collected by the Internal Revenue Service, import duties by the Customs, Excise and Preventive Service, and value added tax by the VAT Service. Each had its own systems and offices. The Ghana Revenue Authority Act of 2009 merged the three into a single body. The aim was to improve efficiency, reduce costs and make tax collection more coordinated.
The GRA’s Domestic Tax Revenue Division handles income tax, VAT and other domestic taxes. Businesses file returns and pay taxes through this division.
Customs, the TIN and VAT
The Customs Division collects import and export duties at ports, airports and borders, and works to prevent smuggling. Every taxpayer needs a Tax Identification Number. In Ghana, the Ghana Card number now serves as the TIN for individuals, simplifying registration. VAT, introduced in Ghana in 1998 after a failed attempt in 1995, is one of the government’s largest sources of revenue. Businesses above a certain turnover must register and charge it.
The GRA has introduced online filing, electronic VAT invoicing and digital payment systems to make compliance easier and reduce evasion.
Targets, challenges and paying tax
The GRA is given annual revenue targets in the national budget. Meeting them matters greatly for the government, especially under IMF programmes. Its performance is closely watched. Ghana’s tax-to-GDP ratio is lower than many similar countries. A large informal sector, tax exemptions and evasion limit collections. Some tax policies administered by the GRA, such as the electronic transfer levy introduced in 2022, have been controversial.
Individuals in formal employment have taxes deducted by employers. Self-employed people must register and file returns themselves.
Taxpayer education and the ports
The GRA runs campaigns to explain taxes to traders and small businesses, many of whom operate informally. Officials visit markets and use radio programmes in local languages to encourage registration. At Tema and Takoradi, customs officers inspect cargo, value imports and collect duties. Delays and disputes over valuations are common complaints from importers. Taxes are rarely popular. The Ghana Revenue Authority’s job is to collect them fairly enough that people believe paying is worth it.
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