LIVE: Parliament grills Barker-Vormawor over bribery allegation
Ghana generates GHC18 billion in total revenue in first half of 2024
Ghana generates GHC18 billion in total revenue in first half of 2024
By: Nii Ammui Fio | 2 mins read
The government of Ghana reported a total revenue generation of GHC 18 billion in the first half of 2024, driven by substantial increases in tax collections.
According to data from the Finance Ministry, revenue surged from GHS 7,836,251,007 in the first quarter (Q1) to GHS 11,125,051,450 in the second quarter (Q2), marking a remarkable 42% increase and a quarterly difference of GHS 3,288,800,443.
Key contributors to this revenue growth included taxes on domestic goods and services, which rose by GHS 1.5 billion, and income and property taxes, which saw an increase of nearly GHS 1.8 billion. Additionally, the first quarter exhibited stable revenue growth, with consistent month-on-month improvements.
Month-to-Month Analysis for Q1
In January, government revenues were strongest in taxes on income and property, totaling GHS 4,639,261,614, bolstered by significant contributions from PAYE, self-employed income taxes, and company taxes.
Taxes on domestic goods and services generated GHS 3,031,051,950, while international trade taxes contributed GHS 1,503,257,362.
February experienced a slight overall revenue increase, with steady growth in income and property taxes as well as domestic goods and services. However, international trade taxes saw a slight decline compared to January. The figures for February were: taxes on income & property at GHS 4,672,893,801, domestic goods & services at GHS 3,060,740,761, and international trade at GHS 1,236,317,580.
March concluded Q1 with the highest revenue, primarily driven by a boost in domestic goods and services taxes. The consistent performance of income and property taxes, along with a recovery in international trade taxes, contributed to this outcome, yielding GHS 4,625,177,585 in income & property taxes, GHS 3,311,670,761 in domestic goods & services, and GHS 1,248,347,916 in international trade.
Month-to-Month Analysis for Q2
April began Q2 with a moderate revenue increase compared to March, primarily due to growth in domestic goods and services taxes and improvements in international trade duties. The government collected GHS 4,518,853,471 from income & property taxes, GHS 3,611,670,761 from domestic goods & services, and GHS 1,436,513,358 from international trade.
In May, total tax revenue saw a substantial rise, mainly driven by a GHS 1.5 billion increase in income and property taxes, alongside significant growth in domestic goods and services taxes.
Revenue for May reached GHS 6,010,186,166 from income & property taxes, GHS 4,519,182,419 from domestic goods & services, and GHS 1,557,350,000 from international trade.
June recorded a slight leveling off in total revenue compared to May, although income and property taxes (GHS 5,051,322,928) and domestic goods and services (GHS 4,013,743,300) continued to dominate collections, with international trade taxes remaining stable at GHS 1,505,350,000.
Looking ahead, the government aims to mobilize a total revenue of GHS 176.4 billion in 2024, representing a 22% increase over the 2023 target, with tax revenue accounting for 81.1% of total revenue.
Ghana’s revenue-to-GDP ratio is expected to surpass 17% year-on-year for the next six years, as projected by the International Monetary Fund's April 2024 Fiscal Monitor. In 2024, the government is targeting a revenue-to-GDP ratio of 16.7%, up from 15.7% in 2023, a condition tied to the $3 billion Extended Credit Facility from the IMF.
