Economist Dr Adu Owusu Sarkodie says the government is placing its biggest bet on tax compliance in 2026 after scrapping multiple revenue lines that previously brought in billions of cedis in its latest budget statement.

Speaking on Joy News’ PM Express Business Edition, he said the government has already erased major tools that had been supporting the public purse.

According to him, the e-levy alone was bringing in “around ¢2 billion over a little over GH¢2 billion,” yet it has been abolished. He added that the betting tax, which generated “roughly ¢300 million,” has also been scrapped.

Dr Sarkodie explained that the COVID-19 levy was next, even though it was expected to contribute heavily next year.

“They have abolished their COVID-19 tax, which next year was projected to rake in about ¢3 billion,” he said.

He noted that the COVID-19 levy had become one of the country’s strongest revenue lines.

“Covid-19 was giving us almost the same amount as the total royalties from oil and gas. This year, total royalties from oil and gas are estimated to be ¢2.9 billion. Covid-19 levy will be giving us ¢2.8 billion.”

He warned that the revenue gap will be significant.

“So you’ve taken e-Levy ¢2 billion, we are going to take away the Covid-19 levy, another close to ¢3 billion. That’s about ¢5 billion. So that will bring down your revenue.”

Despite this, he said government remains confident it can still collect more.

“The government is saying that you can raise revenue. You can increase revenue by even abolishing taxes or reducing tax rates,” he noted.

Dr Sarkodie explained the logic behind the strategy.

“When you increase the base, if more people are paying, it’s better than a few people paying a higher rate. So this government believes in bringing the rate down so that you get more people into the basket or the bracket to pay.”

He said the entire fiscal strategy now hinges on one thing: “That’s how they want, so it really focuses on compliance.”