Government prepares new Income Tax Bill to plug revenue leakages

Finance Minister Dr Cassiel Ato Forson has announced plans to introduce a new Income Tax Bill to address gaps in Ghana’s tax system, improve tax compliance among businesses and reduce revenue leakages.

Presenting the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12, 2026, he said the government had completed a comprehensive review of the Income Tax Act, 2015 (Act 896), to align the country’s tax laws with developments in the business environment.

The proposed changes are expected to improve revenue mobilisation while providing a clearer tax framework for businesses operating in Ghana.

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Dr Ato Forson explained that the existing law was introduced before the rapid growth of the digital economy, virtual assets and evolving international tax standards, making it necessary to update the legal framework governing income taxation.

“Mr Speaker, a modern economy requires a modern tax law,” he told Parliament.

He said the review involved consultations among the Ministry of Finance, the Ghana Revenue Authority (GRA), businesses, taxpayers and other stakeholders to identify weaknesses in the existing law and areas requiring amendments.

According to him, the process was intended to ensure that the proposed reforms reflect the needs of taxpayers and businesses.

The Finance Minister disclosed that the Ministry of Finance had incorporated relevant recommendations from stakeholders and submitted drafting instructions to the Office of the Attorney-General and Ministry of Justice for the preparation of a new Income Tax Bill.

The proposed legislation is expected to strengthen the legal framework for income taxation, improve tax administration and provide businesses and individuals with greater clarity and certainty in meeting their tax obligations.

He added that the reforms would also address tax issues arising from digital business activities and virtual assets.

“The reforms will also strengthen tax compliance, protect the tax base, reduce revenue leakages, and mobilise additional domestic resources to finance government’s development priorities,” Dr Ato Forson said.

ANAS/MA

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