Former Finance Minister Dr. Mohammed Amin Adam has called for urgent and bold reforms in Ghana’s tax administration system to plug significant revenue leakages and secure the nation’s economic independence.

Speaking as Guest Speaker at the National Dialogue on Tackling Tax Revenue Leakages at the University of Professional Studies, Accra (UPSA), Dr. Adam described the country’s current tax system as “inefficient and porous,” warning that without swift action, Ghana would continue sacrificing development and sovereignty.

“Our failure to generate optimal tax revenues has compromised our path to sustainable economic growth,” Dr. Adam said. “We are not short of tax instruments or reforms, the real issue is effective implementation and compliance.”

He cited a 2022 GRA analysis which found that Ghana collects only 39% of its potential VAT revenue and only 18.5% of potential corporate tax revenue, describing the losses as “staggering.”

“These leakages represent schools not built, hospitals not equipped, and roads left unpaved,” he added.

Dr. Adam proposed focusing on compliance and closing loopholes rather than increasing tax rates or introducing new levies. “Our tax system is like a leaking pipe; you don’t add pressure, you fix the leaks,” he said.

He emphasised reforms initiated during his tenure, including the Revenue Assurance Compliance and Enforcement (RACE) initiative, the Integrated Customs Management System (ICUMS), and the integration of the Ghana Card with the tax system. He also called for a comprehensive overhaul of how Ghana taxes high-revenue sectors like mining and petroleum.

“The current approach to taxing the extractive sector creates uncertainty and deters investment,” he noted. “We need a comprehensive fiscal regime with predictable rules, including a well-structured resource rent tax.”

He further highlighted illicit financial flows, a narrow tax base dominated by the informal sector, and IMF-driven tax hikes as critical issues. “The informal sector cannot be ignored. It constitutes 72% of GDP and 92% of registered companies,” he said.

Looking ahead, Dr. Adam warned of emerging threats to revenue, including declining development aid, US remittance taxes, global trade wars, and the impact of green financing on tax incentives.

“Either we strengthen tax compliance today, or we keep surrendering our resources and sovereignty,” he concluded. “Let this dialogue be the turning point for concrete and transformative action.”

The event brought together leaders from academia, government, and civil society.