GRA smashes 2024 target: Collects GHC153.5bn

By Samuel Lartey(Prof)

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The Ghana Revenue Authority (GRA) achieved an extraordinary milestone in 2024, collecting GHC153.5 billion in revenue, 5.3% above its target of GHC145.8 billion.

This record-breaking feat is a testament to strategic reforms, technological advancements, and the dedication of staff and stakeholders.

Beyond the numbers, this achievement sets the stage for impactful investments in infrastructure, social programs, and debt reduction, promising a brighter future for Ghana.

This article explores the journey to this success, highlights the historical performance of the GRA, and examines how this achievement will shape Ghana’s development. Additionally, we delve into the way forward to ensure sustainability and continued progress.

A Journey of Growth: Historical Revenue Performance

The GRA’s performance over the last five years has shown steady improvement, underscoring the impact of reforms and innovative strategies:

2020: GHC45.5 billion (impacted by the COVID-19 pandemic and economic slowdown).

2021: GHC72.4 billion (boosted by post-pandemic recovery efforts and the introduction of digital systems).

2022: GHC96 billion (e-Levy implementation and enhanced compliance mechanisms).

2023: GHC129 billion (expansion of the tax base and stricter enforcement measures).

2024: GHC153.5 billion (record-breaking success driven by digitization, public education, and stakeholder collaboration).

This trajectory reflects the GRA’s focus on efficiency, accountability, and modernization, overcoming challenges such as tax evasion, corruption, and inefficiencies.

Key Drivers of Success

Several initiatives contributed to the GRA’s outstanding performance in 2024:

1. Digitization of Tax Systems:

The deployment of the Integrated Tax Application and Preparation System (ITAPS) and e-VAT systems simplified tax filing, increased compliance, and reduced revenue leakages. Over 70% of revenue in 2024 came from digital platforms.

2. Public Awareness Campaigns:

The “Pay Your Tax, Build Your Nation” campaign educated citizens on the importance of taxation, fostering voluntary compliance and improving trust between taxpayers and the government.

3. Broadened Tax Base:

The GRA successfully captured informal sector actors through the mandatory Taxpayer Identification Number (TIN) system, integrating them into the formal tax net.

4. Enhanced Customs

Operations: Improved border monitoring with digital tracking systems led to a 15% increase in customs revenue, addressing leakages in import duties.

5. Staff Motivation and Training:

Performance-based rewards and regular training sessions empowered GRA staff to innovate and excel in their roles.

Implications for Ghana’s Development

The GRA’s success in 2024 has significant implications for the government and the Ghanaian citizenry:

1. Infrastructure Development:

Increased revenue will fund key projects like the Accra-Tema Motorway expansion, rural electrification, and railway modernization, boosting connectivity and economic growth.

2. Debt Reduction:

With public debt at GHC560 billion in 2023 (76% of GDP), the additional GHC7.7 billion eases the pressure on borrowing and creates room for fiscal stability.

3. Social Program Expansion:

Flagship initiatives such as the Free Senior High School program, National Health Insurance Scheme (NHIS), and Livelihood Empowerment Against Poverty (LEAP) will receive enhanced funding, improving access to education, healthcare, and social protection.

4. Job Creation:

Infrastructure projects and investments in local industries like agriculture and manufacturing will create thousands of new jobs, directly benefiting citizens.

5. Economic Stability:

The reduction in borrowing and reliance on foreign loans will stabilize the cedi, curb inflation, and increase the purchasing power of Ghanaians.

The Way Forward

While this achievement is commendable, sustaining and building on this success requires forward-thinking strategies:

1. Deepening Digitization:

Expanding the use of digital tools for tax collection and monitoring will further enhance efficiency and transparency, particularly in capturing untaxed sectors of the economy.

2. Widening the Tax Net:

The informal sector remains largely untaxed, costing the nation billions in potential revenue. Targeted policies and incentives should encourage voluntary compliance among small businesses and entrepreneurs.

3. Strengthening Enforcement:

Combatting tax evasion and fraud requires stricter enforcement measures and stiffer penalties for offenders. Collaboration with international tax organizations can aid in tracking and recovering offshore revenues.

4. Improving Public Confidence:

Transparent reporting on the use of tax revenues and visible improvements in public services will build trust, fostering a culture of compliance.

5. Capacity Building:

Continuous training and capacity building for GRA staff will ensure they remain equipped to handle evolving challenges in tax administration.

Celebrating the Excellence of GRA Leadership and Staff

Kudos to the exceptional leadership, dedicated management, and hardworking staff of the Ghana Revenue Authority, your relentless commitment, innovative strategies, and strong stakeholder collaborations have culminated in this historic achievement.

Your efforts have set a benchmark for excellence in revenue collection and national development; keep up the outstanding work as you continue driving Ghana’s growth and progress!

Conclusion: A New Dawn for Ghana

The GRA’s record-breaking revenue collection in 2024 is not just a fiscal achievement but a turning point for Ghana’s development. With GHC153.5 billion in revenue, the government has the resources to accelerate national transformation, reduce poverty, and improve the quality of life for all Ghanaians.

However, this success must be sustained through innovative strategies, accountability, and stakeholder collaboration. As Ghana moves forward, every citizen has a role to play in building a prosperous future. By paying taxes, supporting reforms, and holding institutions accountable, we can ensure that this momentum continues and that the benefits of growth reach every corner of the nation.

The 2024 achievement is a reminder that with vision, hard work, and unity, Ghana can overcome its challenges and realize its potential. This is more than a celebration of numbers—it is a celebration of progress and hope for a brighter tomorrow.

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