Government acheived domestic tax revenue target for 2021 – Adu Boahen

Govt targets over GH¢57 domestic tax revenue for 2021

2021 tax revenue only 13% of GDP, Minister of State

Govt committed to achieving revenue target of 20% of GDP, Adu Boahen

The Minister of State at the Finance Ministry, Charles Adu Boahen, has disclosed that government met its domestic tax revenue target of GH¢57.06 billion 2021.

The over GH¢57 billion domestic tax revenue, he said, was only about 13 percent of Ghana’s Gross Domestic Product (GDP).

Charles Adu Boahen, who disclosed this at the investiture of the new president of the Association of Ghana Industries (AGI), also not that other government was able to meet its revenue for 2021 it was still below the medium revenue target of 18-20% of GDP.

He said the government was committed to raising its revenue mobilisation in 2022 to 20% of GDP so that would be able to meet the demand of Ghanaians.

“Going forward, the exigencies of our current situation, high youth unemployment, limited fiscal space and a global pandemic [COVID-19] which has induced high debt levels demand that we prioritise moving our tax to Gross Domestic Product (GDP) ratio from an estimated 13.4% in 2021 to 20% in the immediate to medium term which is more align with our peers and global averages,” the minister was myjoyonline.com.

The Minister also indicated the 1.75% E-Levy was critical to government meeting the revenue target of 20 percent of GDP adding that the Finance Minister, Ken Ofori-Atta, will return to Parliament before the end of January 2022 to seek the legislature’s approval of the tax.

“This month [January 2022] we will go back to the floor of Parliament with the E-Levy and ensure that it get pass by the end of the month,” he said. Read Full Story