Core Viewpoint - The International Monetary Fund (IMF) states that Ghana's tax potential in Sub-Saharan Africa is underutilized and significantly below its expected level [1] Group 1: Tax Revenue Potential - Approximately one-third of countries in Sub-Saharan Africa have a tax gap exceeding 5 percentage points of their GDP [1] - The differences in estimated tax potential among countries reflect variations in economic development, informal economy levels, trade openness, public sector efficiency, and corruption [1] - The estimated tax potential in the region is already far below that of other global regions, highlighting long-term structural constraints [1] Group 2: Recommendations for Improvement - Reducing costly and poorly targeted tax expenditures, while enhancing tax performance and overall efficiency of the tax system, can help narrow the tax gap [1] - With external financing options becoming increasingly limited, there is a growing urgency for Sub-Saharan African countries to seek untapped areas within tax policy to meet development needs [1]

Core Insights - The International Monetary Fund (IMF) analysis indicates that if low-income countries realize their estimated tax potential, it could lead to an additional 7% increase in their Gross Domestic Product (GDP) [1] Group 1 - The potential increase in GDP is significant, highlighting the importance of tax reforms in low-income countries [1]