GRA intensifies efforts to tax informal sector through modified taxation scheme
The Ghana Revenue Authority (GRA) has reaffirmed its commitment to expanding the country’s tax base by bringing more operators in the informal sector into the tax net through its modified taxation scheme.
Speaking on the maiden edition of the GRA Connect Radio Show on Joy FM’s Super Morning Show, Acting Deputy Commissioner for Strategy and Research and Head of VAT Administration, Dr. Dominic Naab, explained that the scheme is specifically designed to capture individuals whose businesses fall below the threshold for standard VAT registration.
Dr. Naab noted that while taxing the informal sector has long been a challenge, the authority remains determined to ensure that all income earners contribute their fair share to national development.
“They are making income, but they have to be taxed anyway,” he said. “The modified taxation basically targets persons whose turnover is small, but whom we still want to contribute to the tax system.”
He clarified that the scheme applies only to individuals and sole proprietors who do not file accounts with the Registrar of Companies. Registered companies, he stressed, remain subject to the regular corporate tax regime.
Dr. Naab also highlighted the history behind the establishment of the GRA, which was created in 2009 under Act 791 of Parliament to streamline revenue collection in Ghana.
Prior to the formation of the authority, tax administration was handled by three separate agencies—the Internal Revenue Service (IRS), the VAT Service, and the Customs, Excise and Preventive Service (CEPS).
According to him, the fragmented structure often resulted in inefficiencies and unnecessary competition among the institutions.
“There was that subtle competition instead of collaboration,” he explained. “It was thought that if they came together as one, there would be greater synergy and a reduction or elimination of duplicated services.”
The integration of the three agencies into the GRA, he said, was intended to improve coordination, enhance efficiency, and strengthen revenue mobilisation efforts across the country.
As part of its broader strategy, the GRA continues to pursue measures aimed at widening the tax net, particularly within the informal sector, which remains a significant part of Ghana’s economy.
Comments (0)