– no E‑Levy, No E-Levy, No Covid-19 Taxes
-Q1 collections defy doomsayers, but policy debate continues
By Phillip Antoh
The Ghana Revenue Authority (GRA) has reported a 20% increase in revenue for the first quarter of 2026 compared to the same period last year. Total collections reached GH¢33.7 billion. The surprise? This growth came after the repeal of three significant taxes: the E‑Levy, the COVID‑19 levy, and the betting tax.
When the Mahama administration scrapped these levies, many analysts predicted a revenue shortfall that would strain an already fragile fiscal position. The GRA itself admitted to initial concerns. Elsie Appau Klu, Technical Advisor to the Commissioner‑General, told a Centre for Policy Scrutiny forum: “At first, yes, the abolition was viewed as a loss for the government, and it places some pressure on our personnel.”
Yet the numbers tell a different story. Twenty percent growth in Q1 suggests that the tax removals did not trigger the feared collapse. The question is why.
Africa Confidential notes several factors could explain the strong performance. First, macroeconomic stabilisation – inflation halved, the cedi relatively stable – has expanded the taxable base. Second, improved compliance and enforcement may have offset the loss of specific levies. Third, the Q1 2025 comparator was weak, coming out of the NPP’s crisis period.
But the GRA’s announcement should be read with caution. One quarter does not make a trend. The full year will reveal whether the growth is sustainable.
At the same forum, tax analyst Isaac Danso Agyiri argued for reinstating the abolished taxes, projecting they could yield up to GH¢18 billion by 2027. That represents a different policy path: more revenue for development spending but at the cost of reintroducing unpopular levies.
The GRA’s strong Q1 performance gives the government room to resist such calls – for now. But if revenue slows in subsequent quarters, the pressure to reverse course will grow.
The real test will come in Q2 and Q3, when the one‑off effects of recovery may fade. The government’s fiscal discipline will also be measured against its spending commitments. For now, the GRA has delivered good news. Whether it can be sustained without the abolished taxes remains an open question.