The Member of Parliament for Okaikwei Central, Patrick Yaw Boamah, has petitioned the finance minister over what he describes as pressing structural and operational challenges in the application of interest and penalty provisions under the Revenue Administration Act, 2016 (Act 915).
He is urging immediate policy and legislative reforms, warning that the current framework could have far-reaching implications for businesses and the broader economy.
Speaking to journalists at Parliament House in Accra, Mr Boamah—who also serves as Chairperson of the Subsidiary Legislation Committee—acknowledged that Act 915 marked a significant step in modernising Ghana’s tax system and strengthening the Ghana Revenue Authority to enforce compliance. However, he noted that its implementation has exposed unintended consequences.
According to him, the existing interest and penalty regime risks eroding taxpayer confidence, weakening economic productivity, and discouraging voluntary compliance.
Mr. Boamah identified three key provisions he described as creating a “revenue-penalty trap.” These include interest rates of up to 125 percent of the Bank of Ghana Monetary Policy Rate, the monthly compounding of interest, and the retrospective application of interest from the original due date of tax liabilities.
He explained that when these measures are combined with prolonged audit timelines and revised tax assessments issued years after the relevant period, taxpayers are often confronted with liabilities that far exceed the principal amount owed. In many instances, he said, the cumulative interest and penalties become excessively burdensome for businesses.
The legislator also raised concerns about alleged misconduct among some tax enforcement officers, claiming that certain officials harass companies and, in some cases, exploit struggling firms through unofficial demands for payment.
Such practices, he argued, undermine the integrity of Ghana’s tax system and deter investment and business growth.
Mr. Boamah has therefore called on the Finance Ministry to undertake a comprehensive review of the interest and penalty provisions under Act 915, to ensure greater fairness, transparency, and sustainability in the country’s tax administration framework.
