Tax Reforms, Phase II

The support to internal resource mobilization in Ghana is a project to help the Government of Ghana to generate more revenues and thereby enable it to finance the implementation of its poverty reduction strategy. In the last two decades Ghanas tax policy and tax administration framework has been fundamentally reformed. The tax to GDP ratio has almost doubled since the end of the 1980s, accompanied by a change in the tax structure, which shifted towards taxation of consumption and saw a relative increase towards a higher proportion of direct taxes and considerable decline, due to trade liberalization, in international trade taxes. In addition, Ghana started to extract oil which contributes increasingly to the Governments revenues. The project supports the changes of the revenue structure and the implementation of the reforms.