Dr. George Domfe, a public sector economics expert, has called on Ghana’s Mahama administration to prioritize expanding the nation’s tax net rather than increasing burdens on existing taxpayers.
Speaking on Peace FM’s Kokrokoo programme, the founding president of Africa Policy Lens highlighted Ghana’s narrow tax base as a critical constraint on revenue and business growth.
“Concentrate on expanding the tax base instead of burdening the same people already paying taxes to pay more,” Domfe stated, noting that while Ghana’s workforce totals approximately 14 million across formal and informal sectors, only about 2.3 million currently pay direct taxes. He emphasized the urgency for reform: “The rest are not captured by the tax net. A lot needs to be done.”
Domfe identified formalizing the economy through digital transactions as essential for improving compliance. “We should do more work to formalize the economy… paying for almost everything electronically. If implemented well, that would rope more people into the tax net,” he explained, criticizing Ghana’s over-reliance on taxing a limited pool of businesses and consumers.
The economist warned that high interest rates, elevated electricity tariffs, and mounting tax pressures are eroding local business competitiveness. “Only a deliberate policy aimed at roping in more people in the informal sector can lead to a friendly business climate,” Domfe asserted. He specifically dismissed recent proposals like a GHC1-per-litre fuel levy as short-term fixes, urging: “Government can do better than asking us to pay GHC1 on fuel.”
The advice comes as the newly reinstated Mahama administration pursues improved domestic revenue mobilization to stabilize Ghana’s economy, facing pressure to balance fiscal needs with sustainable growth policies.
