Otumfuor Calls on GRA to Bring Informal Sector Into Tax Net

Asantehene Otumfuor Osei Tutu II has called on the Ghana Revenue Authority (GRA) to intensify efforts to capture more businesses and individuals operating in the informal economy as part of measures to increase domestic revenue.

The Asantehene made the call when the GRA Board and Management paid a courtesy visit to him at the Manhyia Palace.

While commending the Authority for improvements in revenue mobilisation under its current leadership, Otumfuo said Ghana still had significant untapped revenue potential, particularly within the informal sector.

He argued that relying heavily on taxpayers in the formal sector was not enough to meet the country’s development needs and urged the GRA to adopt innovative approaches to bring more informal operators into the tax system.

“The focus has always been on workers in the formal sector, while there are many others in the informal sector who can be educated on the need to pay taxes to support national development,” he said.

Otumfuo suggested that informal sector groups such as hairdressers, mechanics and commercial drivers could be encouraged to form cooperatives. Such arrangements, he said, could make it easier for the authorities to identify operators and integrate them into the formal tax system.

He also urged the GRA to address revenue leakages and explore unconventional methods of improving tax collection.

“I have observed an improvement in revenue collection since the current Board and Management took over. This is due to the policies you have put in place. Despite these gains, some leakages still exist, and I urge you to work at addressing them,” he said.

The Asantehene further appealed to GRA officials to support the Authority’s leadership as it implements reforms aimed at strengthening tax administration and increasing revenue for national development.

The GRA is currently rolling out a number of reforms to improve tax collection, although some members of the business community have expressed concerns about aspects of the changes.

GRA Board Chairman Ricketts Hagan said the Authority was engaging stakeholders to ensure the reforms were implemented smoothly.

He highlighted the introduction of new systems, including Publican AI, which he said was supporting the Authority’s revenue mobilisation efforts.

“There are new systems, including the Publican AI, which have been helping our efforts,” he said, adding that public understanding of the system was gradually improving.

The Commissioner-General of the GRA also briefed the Asantehene on ongoing reforms and appealed to Ghanaians and businesses to cooperate with the Authority as it works to strengthen domestic revenue mobilisation.

Yaw Opoku Amoako

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