The Ghana Revenue Authority (GRA) has exceeded its revenue target for 2024 by mobilizing GH₵153.5 billion, surpassing the initial target of GH₵145.9 billion by GH₵7.5 billion. This achievement represents a 5.3 percent increase in revenue collection for the year, marking a notable success for the GRA.

The growth is particularly impressive when compared to the previous year, as the performance shows a nominal growth of 35 percent compared to 2023. When factoring in additional levies like the Sanitation Debt Recovery Levy, Energy Sector Debt, and the Sanitation and Pollution Levy, the total revenue collection for 2024 reached GH₵157.9 billion, which is a significant milestone in the country’s efforts to boost domestic revenue generation.

The GRA’s exceptional performance can be attributed to a combination of factors, including strong growth in domestic revenue and significant improvements in the performance of various tax categories.

Domestic revenue, in particular, grew by 31.6 percent, reflecting a positive trend in the country’s ability to generate income from local sources. Customs collections, which saw a 47 percent growth, also contributed significantly to the overall revenue increase. The GRA’s efforts to ensure effective tax administration and collection have been crucial in driving this success.

A closer look at the different tax categories shows how well the GRA performed in several areas. One of the standout performers was Corporate Tax, which is a major source of revenue for the government. The GRA had set an ambitious target of GH₵30 billion for Corporate Tax but managed to surpass this target by collecting GH₵38 billion.

This resulted in an overachievement of GH₵8 billion, marking a significant success in this area. Similarly, the Mineral Royalty tax, which contributes to the country’s natural resource revenue, brought in GH₵5.2 billion, exceeding its target of GH₵3 billion by a considerable margin.

Another key area of performance was the Airport Tax, which saw a strong collection of GH₵1.6 billion, surpassing the target of GH₵1.3 billion. This represents a healthy overachievement and indicates that the GRA has been successful in collecting revenue from various sectors of the economy. These strong performances in key tax categories were largely attributed to the GRA’s ongoing efforts to enforce tax compliance and improve its collection processes.

Sources close to the GRA have noted that the authority’s focus on increasing tax compliance played a major role in meeting and exceeding the revenue targets for 2024. In particular, the GRA has been proactive in ensuring that businesses and individuals fulfill their tax obligations, leading to higher collection rates across various tax handles.

The use of modern tax administration tools, such as digitization and data analytics, has allowed the GRA to identify potential tax evaders and ensure that revenue targets are met more effectively.

While the overall performance was strong, some tax components did not meet their targets. For example, the GRA had set a target of GH₵2.1 billion for the e-levy but collected GH₵2 billion, falling short of the target by GH₵100 million.

The COVID-19 Health Recovery Levy (Flat Rate) also underperformed, with the GRA collecting only GH₵86 million, well below the target of GH₵128 million. Similarly, the COVID-19 Health Recovery Levy (Standard Rate) generated GH₵2.7 billion, which was less than the targeted GH₵4.2 billion. These shortfalls indicate that while some revenue sources performed well, others faced challenges that prevented them from meeting their targets.

Despite the shortfall in certain levies, the overall revenue performance in 2024 is still considered a significant achievement. The strong results in areas such as Corporate Tax, Mineral Royalty, and Customs collection have offset the underperformance in other areas.

This achievement is particularly important for Ghana, as it reflects the government’s ongoing efforts to improve revenue mobilization and reduce dependence on external debt and aid.

The GRA’s ability to exceed its targets is also crucial for the country’s fiscal health. The additional revenue will help fund various government projects and initiatives, including infrastructure development, social services, and other national priorities. Furthermore, it enhances the government’s ability to manage its finances and reduce the fiscal deficit, which has been a key challenge for Ghana in recent years.

In conclusion, the GRA’s performance in 2024 has been outstanding, with total revenue surpassing expectations by GH₵7.5 billion. The authority’s strong focus on improving compliance, utilizing modern tax administration tools, and effectively managing key tax areas contributed significantly to this success.

While some levies fell short of their targets, the overall revenue collection for the year is a testament to the GRA’s effectiveness in mobilizing domestic revenue. This achievement is an important step toward strengthening Ghana’s fiscal position and supporting the country’s long-term economic growth.