By Susuana Ago
At the 2025 National May Day Forum held at the Ghana National Association of Teachers (GNAT) Hall in Accra, calls for urgent reforms to Ghana’s personal income tax regime took centre stage, with stakeholders demanding a significant increase in the tax-free band to reflect the country’s rising cost of living.
Executive Director of Revenue Mobilisation Africa (RMA), Geoffrey Ocansey, urged the government to prioritise an upward review of the personal income tax-free threshold in the upcoming national budget. According to him, the current tax-free band of GHS 490 per month — approximately $32 — is grossly inadequate and fails to reflect the economic realities faced by Ghanaian workers.
“With cost of living escalating rapidly, it is unconscionable that the tax-free threshold remains lower than even the minimum wage of about GHS 600,” Mr. Ocansey stated. “We are calling for a new threshold of at least GHS 1,500 to reduce the burden on workers.”
Echoing these sentiments, Deputy Secretary-General of the Trades Union Congress (TUC), Dr. Kwabena Nyarko, acknowledged the gains made since the introduction of the tax-free band, crediting advocacy efforts by the TUC and its partners. However, he emphasised that the current economic conditions necessitate a renewed push for reform.
Dr. Nyarko noted that the introduction of the tax-free band was a milestone, but insisted it is time to expand it.
Participants at the forum also discussed the need for living wages and salary harmonisation.
The event, themed “Resetting Pay and Working Conditions in Ghana: The Role of Stakeholders,” brought together labour leaders, workers, and government representatives.
