The Member of Parliament for Okaikwei Central, Patrick Yaw Boamah, is calling for an urgent reform of the interest and penalty regimes currently enforced by the Ghana Revenue Authority (GRA), describing them as counterproductive and a burden on businesses.
Speaking on the floor of Parliament or in a recent engagement (context depending on the source’s specific reporting), Mr. Boamah argued that the current structure of penalties and interest charges does not effectively encourage voluntary compliance but rather places an unsustainable strain on taxpayers, particularly small and medium-sized enterprises.
The lawmaker emphasized that while the state has a legitimate right to collect revenue, the mechanisms for enforcement must be fair and realistic. He noted that the compounding nature of the existing penalties often leaves compliant businesses struggling to pay off accumulated interest on minor infractions or administrative delays, sometimes pushing them toward insolvency.
“We need a regime that balances the need for revenue mobilization with the practical realities of doing business in Ghana,” Mr. Boamah stated. “The current system often punishes errors and delays so severely that it becomes a disincentive for businesses trying to regularize their tax status.”
He called on the Ministry of Finance and the leadership of the GRA to initiate a comprehensive review of the penalties framework, suggesting a move toward more proportionate and flexible measures that prioritize taxpayer education and amicable settlements over punitive actions.
His remarks add to a growing chorus of voices from the private sector and civil society advocating for tax administration reforms aimed at broadening the tax base without stifling economic growth.
