The Ghana Revenue Authority (GRA) has rolled out the Modified Taxation Scheme (MTS) to make it easier for informal sector businesses to register and pay taxes efficiently and on time.

The initiative, launched alongside the Sustained Tax Education Programme in Accra, aims to simplify compliance processes, promote transparency, and encourage voluntary participation in the tax system.

Speaking at the launch, Commissioner-General Anthony Kwasi Sarpong described the MTS as a simplified, technology-driven tax framework tailored for micro, small, and medium enterprises (MSMEs). He explained that the system is designed to reduce bureaucracy, streamline registration and payment processes, and ensure fairness in the tax system.

“The Modified Taxation Scheme reflects GRA’s commitment to modernising Ghana’s tax administration. It introduces predictable, transparent, and user-friendly processes that make compliance easier for small businesses and individuals,” Mr. Sarpong said.

Under the MTS, individuals or enterprises with annual incomes not exceeding GH¢500,000 will pay a flat rate of 3%.

“This means if a small business earns GH¢200,000 a year, the tax payable will be GH¢6,000. Similarly, someone earning GH¢25,000 will pay GH¢750 annually,” he explained.

The new framework, he added, is expected to enhance revenue mobilisation while fostering trust between taxpayers and the GRA.

The accompanying Sustained Tax Education Programme will provide citizens with practical guidance on registration, filing, and payment procedures. The GRA has developed a three-year national education plan to ensure broad outreach across markets, schools, universities, and professional associations.

The programme, Mr. Sarpong noted, aims to make tax education a continuous national effort rather than a one-off campaign, helping citizens understand the importance of voluntary tax compliance in nation-building.

Deputy Minister of Finance, Thomas Nyarko Ampem, commended the GRA’s efforts to formalise the informal sector, which accounts for nearly 80% of Ghana’s economy.

“Compliance has been low in previous years, but with the MTS and a sustained tax education plan, we can change that narrative,” he said.

He added that improving domestic revenue collection is key to achieving sustainable non-oil tax revenue and meeting Ghana’s medium-term fiscal targets.

However, he emphasised that tax compliance is a shared national duty, requiring cooperation among government agencies, private businesses, traditional leaders, faith-based organisations, and citizens.

Launching the two initiatives, Chief of Staff Julius Debrah, who represented President John Dramani Mahama, lauded the GRA for its innovation and persistence in mobilising revenue for national development.

While acknowledging ongoing challenges, he reminded GRA officials of their GH¢189 billion collection target for 2025.

“As of September 2025, the Authority had already collected GH¢180.6 billion. With the MTS and tax education drive, I am confident this target will be achieved,” he said.

Mr. Debrah further noted that while government continues to remove nuisance taxes, citizens must also honour their tax obligations to sustain national growth.

“Taxes build our roads, equip our security forces, and fund our development. It is the tool for ensuring a stronger, safer, and more prosperous nation,” he remarked.

The Modified Taxation Scheme is not a new tax but a personal income tax mechanism tailored for informal sector operators. It targets businesses earning income solely from domestic sources and not registered for VAT.

The platform, accessible via mobile devices, allows taxpayers to register using their Ghana Card, digital address, phone number, and basic business information.

Payments can be made easily through a *short code (880#) or the MTS mobile app using mobile money wallets.

Through this digital solution, the GRA aims to simplify compliance, expand the tax net, and build a culture of responsible tax contribution to support Ghana’s long-term economic development.