The World Bank has revealed that Ghana's tax system does not generate as much revenue as it could because of the many tax reliefs or exemptions that narrows the corporate income tax (CIT) base.
Between 2015 and 2020, the Bretton Wood institution pointed out that, Ghana missed out on an average of about 1.3% of its Gross Domestic Product (GDP) in corporate tax revenue each year.
Part of the reason for this is that there are more than two dozen different types of tax breaks for companies.
According to the World Bank, these tax breaks cost Ghana around 0.5% of its GDP in lost revenue each year.
“By reducing or eliminating some of these generous tax breaks, Ghana could improve its tax system and collect more revenue from corporate taxes”, it noted in its 8th Ghana Economic Update.
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