, Anthony Kwasi Sarpong, has revealed that the recent sharp recovery of the cedi has significantly reduced government revenues, particularly from import duties and the extractive sector.){kind=link}
The Commissioner-General of the Ghana Revenue Authority (GRA), Anthony Kwasi Sarpong, has revealed that the recent sharp recovery of the cedi has significantly reduced government revenues, particularly from import duties and the extractive sector.
Speaking on Joy News’ PM Express Business Edition on Thursday, August 21, Mr. Sarpong explained that the appreciation of the cedi from GH¢15 to about GH¢10.5 to the dollar within three months translated into a 30 per cent drop in revenue in cedi terms.
“If you look at the duties at the port, they are denominated in foreign currency, mostly in USD. And therefore, once the exchange rate… dropped from 15 to about 10.5, that’s a 30% sharp drop in cedi terms. So obviously, in a split of three months, what comes to you drops by 30%,” he said.
Optimism for Recovery
Despite the short-term setback, the GRA boss expressed confidence that the situation will reverse in the months ahead. He said lower exchange rates make imports cheaper, which could boost trade volumes and restore lost revenues.
“We are confident that because the rates are lower, importers can import more… while their initial stock gets finished and they restock, it’s going to be more, and we will regain the taxes from there,” he noted.
He added that taxes from the extractive industry and upstream petroleum sector — also paid in dollars — were similarly affected, but predicted corporate income tax and related flows would rebound as costs fall and activity stabilises.
Mr. Sarpong emphasised that structural tax reforms, not short-term exchange rate swings, will ultimately drive sustainable revenue growth. Central to this is the introduction of a modified taxation system for Micro, Small and Medium Enterprises (MSMEs).
“For example, if your business turnover is GH¢200,000 a year, we are saying just pay 3% of that. That probably works out to GH¢5,000 or GH¢3,000 for the whole year. That is all that you have to pay as a small, medium enterprise,” he explained.
With over five million such businesses in Ghana, GRA estimates that enrolling even two million into the tax net could generate about GH¢10 billion annually.
To support compliance, Mr. Sarpong announced that GRA will launch a nationwide tax education campaign next month to boost awareness of civic responsibilities.
“We’ve been doing a lot of tax education over the years, but we have come to the point where we realise that still many Ghanaians are not fully aware… By next month, we are launching nationwide tax education that we will do continuously,” he said.
Technology, he stressed, will be at the heart of GRA’s strategy. By the end of the year, a new system will be rolled out to track online transactions and automatically deduct taxes at the point of payment.
“This is going to be a game changer for both institutions outside Ghana but trading here, and for institutions that are local,” he said.
Mr. Sarpong maintained that although the cedi’s rebound has temporarily dented government revenues, the combined effect of tax reforms, broader compliance, and digital tools will restore revenue flows and keep government finances on track.