The Ghana Revenue Authority (GRA) has launched a new digital tax system. It uses a mobile shortcode, *880#, to collect taxes. This system targets Ghana's informal economy. The goal is to make paying taxes easier for these businesses. It also aims to increase the amount of tax collected.
The informal sector is a huge part of Ghana's economy. It represents about 27.4% of the country's total economic output, known as GDP. However, this sector contributes less than 5% to the nation's total tax revenue. The new digital system, called the Modified Taxation System (MTS), is designed to change this. The Ashanti region is leading the rollout with special outreach programs.
These efforts are part of a broader strategy to broaden Ghana's tax base. The GRA is actively engaging traders. This includes those in busy markets like Kejetia. The Authority wants to educate them on their tax obligations. This is crucial for national development. Ghana relies on taxes to fund public services like roads and hospitals.
Agnes Adu Gyamfi Adjei, the Ashanti Regional Area Director of GRA, stressed that education is key. She highlighted that GRA has set up permanent offices in markets. These offices will help traders with registration and payments. This ensures continuous engagement. It helps them understand that earning income and selling taxable items means registering for taxes.
Under current laws, businesses with a certain amount of sales must register for Value Added Tax (VAT). This tax applies to most goods and services. Not following these rules can lead to penalties. These penalties are added daily to any unpaid taxes. The GRA has also opened new taxpayer service centres. Two new centres were upgraded in Tafo-Pankrono and Bekwai. This brings the total number of tax offices in the Ashanti region to ten. This expansion makes it easier for more people to access tax services.
Mrs. Adu Gyamfi stated that while enforcement is important, the main focus is on teaching people. She wants businesses to pay taxes willingly. She emphasized that taxes are the foundation of Ghana's development. Taxes fund essential services for all citizens. The GRA is committed to educating the public for this reason.
The current campaign also allows people to pay their taxes immediately. This includes outstanding VAT and personal income taxes. For the first time, the GRA offered free health screenings. A medical team from Accra provided these services. Mrs. Adu Gyamfi explained this shows the GRA recognizes the link between health and work. Healthy citizens can earn more and pay more taxes. This benefits the entire country.