Asian Journal of Arts, Humanities and Social Studies

Green procurement has become central to global sustainability efforts, yet its adoption among Small and Medium Enterprises (SMEs) in Ghana remains limited. SMEs constitute over 90% of businesses, employ 80% of the workforce, and contribute about 60% to GDP, making their participation critical to sustainable development. Despite the crucial role fiscal policies play in influencing policy, there appears to be a critical gap in assessing how fiscal tools, particularly tax exemptions, subsidies, and preferential contracting, affect green procurement within the SME sector This study examines the role of tax exemptions, subsidies, and preferential contracting policies on the adoption of green procurement practices in SMEs within the Accra Metropoli. tan Area. Using a quantitative research design, data were collected from 100 SME owners, managers, and procurement officers through structured questionnaires. In order to understand the relationships between the variables, analysis using SPSS regression models was conducted. The results revealed that tax exemptions have the strongest and most significant impact on green procurement adoption, demonstrating their effectiveness as a fiscal incentive. Subsidies showed a positive but marginal effect, while preferential contracting policies, though positive, were statistically insignificant. The findings highlight tax exemptions as the most effective driver of sustainable procurement in Ghana’s SME sector. Policy recommendations include scaling up fiscal incentives, improving subsidy accessibility, and strengthening application of preferential contracting to align SME practices with Ghana’s green economy agenda. Tax based incentives and preferential contracting reforms were among the recommendations proposed. The proposed recommendations may help shape policy on fiscal tools for promoting Green Procurement. It was recommended that future research should employ mixed-methods approaches and longitudinal designs to capture comprehensive insights and assess the sustained impact of policy interventions over time. Moreover, investigating institutional capabilities and direct climate change implications will enhance understanding of green procurement barriers and opportunities, thereby informing more effective and resilient policy development.