Abstract:
The main purpose of this study was to examine the impact of tax reforms on
revenue mobilisation performance in Ghana. In order to achieve this purpose,
secondary data were obtained from the domestic tax division of the Ghana
Revenue Authority, and real GDP values were obtained from the Ghana
Statistical Service, which facilitated the analysis for this study. The analysis
started with unit root, cointegration, and stability tests to establish the data’s
stationarity. Afterwards, the study employed the Autoregressive Distributed
Lag (ARDL) bounds test to establish the relationships among the variables.
The results from the data analysis found that all the variables (revenue
generation, Value Added Tax and petroleum tax) under this study had a
positive relationship with revenue performance and played a significant role in
determining how tax reform influences state revenue performance. This study
concluded that tax reforms had a significant effect on revenue mobilisation
performance in Ghana and that tax revenue mobilisation is relatively
responsive to changes in the economic circumstances in the Ghanaian
economy. It was recommended that the GRA keep investing in technologydriven
initiatives, such as data analytics and risk-based strategies, to find tax
gaps and efficiently pursue non-compliant taxpayers. The GRA and the
Ministry of Finance should work together to evaluate the efficiency and
impact of current tax incentives and exemptions. Also, the GRA should
intensify efforts to bring more individuals and businesses into the formal tax
net.
