–BY Daniel Bampoe
Former President John Agyekum Kufuor has called for decisive national action, underpinned by technology, transparency, and political will, to tackle Ghana’s persistent tax revenue leakages.
His message, delivered on his behalf by Dr. James Kwabena Bomfeh Jnr., was the keynote address at the National Tax Dialogue hosted by the University of Professional Studies, Accra (UPSA).
The event, held under the theme “Tackling Tax Revenue Leakages in Ghana,” brought together stakeholders from academia, government, traditional leadership, development agencies, and the private sector.
In his remarks, former President Kufuor framed the issue as a fundamental challenge to national development, citizenship, and service.
Historical Context of Ghana’s Tax Evolution
Kufuor traced the evolution of Ghana’s tax system, beginning in the post-independence era when revenue was driven primarily by cocoa exports and import duties.
He recalled the introduction of the Value Added Tax (VAT) in the 1990s—a period marked by widespread public resistance culminating in the “Kume Preko” protests.
Upon assuming office in 2001, Kufuor said his administration recognized the urgent need to broaden and modernize the country’s revenue base.
Citing the personal commitment of then-deputy Finance Minister Grace Coleman, who actively worked to improve revenue collection at Ghana’s ports, Kufuor noted his government’s efforts to unify revenue bodies under the Ghana Revenue Authority (GRA).
Technological Reforms
Key to his administration’s approach, he said, was the adoption of automation and digitization to reduce human interference and associated corruption.
These reforms, Kufuor emphasized, were designed not only to close loopholes but also to bring the vast informal sector within the tax net—a critical step for a largely private sector-driven economy.
He linked the establishment of the National Identification Authority (NIA) to this goal, explaining that a comprehensive identity system could significantly expand the tax base by capturing informal sector actors who had historically evaded taxation.
Linking Wages, Fairness, and Compliance
Kufuor also stressed the need for fairness and sensitivity in tax policy.
Overburdened or underpaid workers, he warned, may feel justified in avoiding or evading taxes.
During his tenure, his government sought to make tax burdens bearable while raising the minimum earnings, especially for cocoa farmers.
He maintained that successful tax systems are not built by squeezing more from the few who already pay, but by expanding compliance and fostering trust through transparency and equitable treatment.
Corruption and Accountability
“Leakages and corruption are twin evils,” Kufuor declared, pointing to his administration’s “zero tolerance for corruption” policy.
He argued that public distrust in government spending leads to tax resistance and undermines compliance. Therefore, governments must be open with citizens about how tax revenues are collected and spent.
He urged authorities to publish figures, report on progress, and admit failures when necessary. Only through such openness, he argued, can trust be rebuilt and a virtuous cycle of compliance and revenue growth established.
