Ghana’s total revenue and grants for the first half of 2025 fell short of expectations by 5.5%, missing the GH¢122.9 billion target despite recording a strong 22.9% year-on-year growth to reach GH¢116.2 billion, according to the Bank of Ghana’s September 2025 Monetary Policy Report.
The shortfall was widespread across major tax categories, though certain revenue lines performed above projections.
Tax Performance Overview
Non-oil tax revenue came in 0.2% below target, while Pay As You Earn (PAYE) underperformed by 3.5%, largely due to lower payments from the mining sector following the cedi’s appreciation.
On the upside, corporate tax collections exceeded target by 2.8%, driven by stronger-than-expected results in the mining and financial sectors.
Consumption and Import Taxes
Domestic consumption taxes showed robust performance.
-
Value Added Tax (VAT) surpassed target by 2.2%,
-
The GETFund Levy by 14.0%, and
-
The National Health Insurance Levy (NHIL) by 14.8%,
reflecting increased consumer spending amid easing inflationary pressures.
However, import-related taxes underperformed significantly as the appreciation of the cedi reduced import values.
-
Import duties missed target by GH¢1.9 billion, a 13% decline,
-
The import components of VAT, GETFund, and NHIL also fell short by 3.8%, 4.6%, and 5.2%, respectively.
Sectoral Highlights
The Communications Service Tax (CST) stood out as one of the best-performing revenue lines, exceeding its target by GH¢400 million (66.3%), supported by higher gross revenues and improved collections from prepaid credit sales by a major telecom operator.
In contrast, crude oil receipts underperformed by 42.7%, or about GH¢4.4 billion, due to delayed corporate income tax payments and exchange rate effects.
Additionally, grants fell short by GH¢553 million, mainly because of the non-disbursement of project grants from some development partners.
Outlook and Policy Implications
The report underscored that Ghana’s revenue performance, though resilient, highlights the need for enhanced tax compliance, diversified revenue sources, and more efficient collection systems to meet fiscal targets.
The Bank of Ghana emphasized that strengthening these areas will be vital to sustaining macroeconomic stability and achieving fiscal consolidation in the months ahead.
Story By: Afia Ohenewaa Akyerem