Commissioner for the Domestic Tax Revenue Division of the Ghana Revenue Authority (GRA), Dr. Martin Kolbil Yamborigya, announced that the Authority is targeting a reduction in the country’s Value Added Tax (VAT) gap from the current 60% to about 30% by the end of 2028.
Speaking on the sidelines of the launch of the VAT Compliance Campaign after visiting shops at Accra Mall, Dr. Yamborigya said the goal is part of the GRA’s VAT Strategic Plan, which seeks to improve compliance and increase VAT collections.
“According to our VAT strategic plan, we are hoping that between now and the end of 2028 we should be able to close this gap from the current 60% to about 30%,” he said.
He explained that achieving the target would require the GRA to collect significantly more VAT from the existing tax base while working towards broader compliance. “That means that at least we should be able to collect 30% more in addition to what we are currently collecting,” he added.
The Commissioner said the long‑term objective is to ensure that businesses and individuals meet their VAT obligations consistently, rather than relying solely on enforcement measures. “In the long run we expect every Ghanaian to comply so that the tax will be collected,” he stated.
He stressed that the ongoing VAT Compliance Campaign is not intended to harass businesses or put them at a disadvantage. “This campaign is not meant to harass businesses and we don’t also intend to disadvantage any business,” he said.
During compliance visits to businesses at Accra Mall, the GRA identified instances where VAT invoices were not consistently issued. “We realized that they were not religiously issuing VAT invoices and we only encourage them to make sure they do the right thing,” Dr. Yamborigya said.
The Authority opted to educate and engage the affected businesses rather than immediately resorting to punitive measures. “If we were not to show human face, we probably would have called for their arrest immediately,” he said.
He added that the GRA will continue to combine education and engagement with enforcement, particularly where non‑compliance is found to be deliberate. “We are going to be more engaging, we are going to be more educative. But where we find out that the non‑compliance is deliberate, that’s what we apply,” he stated.
Dr. Yamborigya said the approach is intended to ensure that taxpayers understand their obligations and are given the opportunity to comply, while deliberate breaches are dealt with appropriately. “So we continue to show human face by ensuring that people know and understand their tax obligations and comply,” he added.
