BY Daniel Bampoe
The Ghana Revenue Authority (GRA) mid-year review of tax revenue performance, shows incredible success in revenue mobilisation.
The GRA is projecting an ambitious total outturn of GHC220 billion for 2025, signaling both progress and challenges for the government’s fiscal management.
Report available to The Daily Gist provides a detailed analysis of domestic and import taxes, sector-specific levies, and the effects of currency fluctuations on revenue collection.
According to GRA data, total tax revenue collected between January and June 2025 amounted to GH¢89.45 billion, representing a 6.4% increase over the same period in 2024.
Direct taxes, including Pay-As-You-Earn (PAYE), corporate tax, and self-employed contributions, reached GH¢42.1 billion, outperforming initial budget estimates by GH¢6.5 billion.
PAYE alone accounted for GH¢12.95 billion, slightly above the planned GH¢12.87 billion, reflecting strong compliance from salaried workers. Corporate tax collections surged to GH¢20.19 billion, exceeding the budget by 21.7%, a sign of recovery among businesses after the pandemic-related slowdowns of recent years.
Self-employed taxes rose by 18.7% to GH¢788.95 million, while “other taxes,” which include levies on interest and miscellaneous revenue streams, recorded a remarkable 1,198.6% increase over projections, highlighting the effectiveness of targeted enforcement measures.
Mineral royalties and the financial sector recovery levy also showed impressive growth, up 25.8% and 25.6%, respectively, indicating improved sector compliance.
Conversely, revenues from the Ghana Stabilization Levy and National Fiscal Stabilization Levy (GSL/NFSL) fell by 30.4%, underscoring challenges in certain regulatory collections.
Indirect taxes, including domestic VAT, excise, and the National Health Insurance Levy (NHIL), contributed GH¢19.4 billion in the first half of the year.
While domestic VAT fell slightly below target by 14.6%, excise and NHIL collections exceeded expectations, supporting overall domestic tax revenue growth. Customs duties, including import VAT and import levies, also performed strongly, contributing GH¢24.59 billion, a 1.8% increase over the budget.
The report emphasizes the significant impact of exchange rate fluctuations on customs and import-related taxes.
The Ghana cedi expected depreciation from GH¢10.30 per USD in June to projected rates of GH¢12.80 by December 2025, a factor expected to influence import valuations and ultimately, revenue performance.
Analysts caution that while depreciation boosts the cedi-denominated value of import taxes, it may also increase domestic inflationary pressures.
Comparing the 2025 projections with previous years, GRA anticipates total tax revenue of GH¢220 billion by year-end, up from GH¢198.8 billion in 2024, reflecting a 10.6% year-on-year increase.
Growth is expected across major categories: PAYE collections are projected to rise by 29.3%, corporate tax by 20.2%, and mineral royalties by 29%.
Overall, tax-to-non-oil GDP ratio is expected to increase slightly to 14.1%, indicating the government’s ability to mobilize domestic resources effectively despite global economic headwinds.
The mid-year report highlights both achievements and potential gaps.
While total revenue targets appear within reach, shortfalls in certain areas, including petroleum excise and some COVID-19-related levies, underscore the need for continued monitoring, compliance enforcement, and adaptive fiscal strategies to offset economic uncertainties.
