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Ghana’s government is preparing a new Income Tax Bill aimed at addressing weaknesses in the country’s tax framework, improving business compliance and reducing revenue leakages as part of efforts to strengthen domestic revenue mobilisation.
Finance Minister Dr Cassiel Ato Forson announced the proposed legislation while presenting the 2027 Budget Statement and Economic Policy to Parliament on Thursday, November 12, 2026. He disclosed that the government had completed a comprehensive review of the Income Tax Act, 2015 (Act 896), to ensure that the country’s tax laws reflect changes in the business environment and evolving economic activities.
The proposed reforms are expected to strengthen tax administration, improve revenue collection and provide a clearer and more predictable tax framework for businesses and individuals operating in Ghana.
Ghana reviews income tax framework to reflect economic changes
Dr Ato Forson explained that the existing Income Tax Act was enacted before the rapid expansion of the digital economy, the emergence of virtual assets and changes in international tax standards. These developments, he said, have created the need to modernise the legal framework governing income taxation.
“Mr Speaker, a modern economy requires a modern tax law,” he told Parliament.
The review was undertaken through consultations involving the Ministry of Finance, the Ghana Revenue Authority (GRA), businesses, taxpayers and other relevant stakeholders. The engagements were intended to identify gaps in the existing legislation and determine areas where amendments would be necessary.
According to the Finance Minister, the consultation process was designed to ensure that the proposed changes take account of the experiences and needs of taxpayers and businesses, while addressing emerging challenges in the tax system.
New Income Tax Bill moves to legislative drafting stage
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 establish a stronger legal foundation for income taxation, improve tax administration and provide greater clarity and certainty for businesses and individuals in meeting their tax obligations.
A key focus of the review is addressing tax issues associated with digital business activities and virtual assets, areas that have become increasingly relevant as economic transactions and business models evolve.
Updating the legal framework is also expected to help the tax authorities respond more effectively to changes in commercial activity and developments in international taxation.
Reforms target tax compliance and domestic revenue mobilisation
Beyond modernising income tax rules, the proposed Bill forms part of the government’s broader efforts to strengthen compliance, protect Ghana’s tax base and improve domestic revenue mobilisation.
Dr Ato Forson said the reforms would help close gaps in the tax system, reduce revenue leakages and generate additional resources to support the government’s development priorities.
“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,” he said.
The proposed Income Tax Bill therefore seeks to balance a more effective revenue framework with clearer tax obligations for businesses and individuals. Its preparation marks a further step in Ghana’s efforts to adapt its tax legislation to a changing economic environment and strengthen the administration of income taxation.
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