Government Weighs Limited Amnesty for Taxpayers with Outstanding Debts

The government is in the process of implementing a new “limited tax amnesty” initiative aimed at encouraging taxpayers, particularly non-residents and some domestic individuals, to settle their outstanding tax liabilities without facing penalties or additional charges. This initiative is designed to offer relief to individuals who have defaulted on their tax obligations, providing them with a chance to clear their dues in a manner that encourages greater compliance with tax laws.

The move comes as part of the government’s broader efforts to address tax evasion and improve overall tax compliance across the country. The limited tax amnesty program will not only provide a one-time opportunity for taxpayers to pay their debts, but it will also help to raise awareness about the importance of fulfilling tax obligations. Through this initiative, the government aims to create an environment where taxpayers feel more inclined to come forward and settle their outstanding dues, knowing that they will not be burdened by penalties or interest on those payments.

Speaking at a virtual post-budget forum organized by LIMA Partners, Daniel Nuer, the Director of Revenue Policy at the Ministry of Finance, provided an overview of this new tax policy measure outlined in the 2025 Budget. He explained that the government is seeking to offer an amnesty to individuals who voluntarily approach the Ghana Revenue Authority (GRA) to clear their tax debts. “In line with the new approach, we are creating a limited amnesty where any taxpayer who walks into the GRA to pay their outstanding taxes will be given relief in the form of a waiver of penalties on their overdue payments,” Nuer stated.

Importantly, Nuer highlighted that this year’s program has been expanded to include not just the waiver of penalties, but also interest charges on unpaid taxes. The aim is to encourage individuals with foreign accounts, who may not have filed their taxes, to come forward and file their returns without fear of facing additional penalties or interest on their overdue obligations. This extension of the amnesty to cover both penalties and interest is designed to provide more comprehensive relief to taxpayers, making it easier for them to settle their outstanding debts without facing financial strain.

The government’s push to improve tax compliance is an ongoing effort that has seen various initiatives rolled out in recent years. The limited tax amnesty program represents a significant step toward encouraging voluntary compliance among taxpayers, making it easier for individuals to fulfill their tax obligations and contribute to the national revenue base. The initiative is expected to have a positive impact on the country’s overall tax collection, as it will help reduce the backlog of unpaid taxes while also fostering a culture of compliance and responsibility among taxpayers.

The Post-Budget Forum hosted by LIMA Partners also provided an opportunity for business leaders, policymakers, and stakeholders in the tax and finance sectors to discuss the broader implications of the government’s economic policies for the coming year. Senior Partner at LIMA, Kwame Ampofo, took the opportunity to highlight some of the key initiatives included in the 2025 Budget, emphasizing the need for stakeholders to fully understand the tax policies in place and how they will affect their operations. Ampofo stressed the importance of businesses ensuring compliance with tax regulations to avoid penalties and ensure smooth operations.

The forum, which was themed “Navigating Tax Policies and Business Impact,” served as a platform for sharing valuable insights on the implications of the government’s proposed tax measures and how businesses can align their strategies with these policies. It was also an important venue for engaging in discussions about the broader impact of fiscal policies on the local economy and the role of businesses in supporting the country’s economic growth through tax compliance.

In conclusion, the limited tax amnesty initiative is an important step by the government to encourage compliance, reduce tax evasion, and improve revenue collection. By offering relief to taxpayers, especially those with foreign accounts and individuals who have not filed their taxes, the government is making it easier for people to clear their tax obligations without facing additional financial burdens. This approach not only provides a practical solution to outstanding tax debts but also serves as a reminder of the importance of tax compliance and the role it plays in supporting the country’s development goals. As the program expands throughout the year, the government aims to further improve its tax collection system, ensuring that more taxpayers come forward and contribute to the national economy.