Economy

GRA to expand tax net with new simplified system targeting informal sector by 2025

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The Ghana Revenue Authority (GRA) is set to onboard informal sector workers into the tax net with a modified tax system by 2025. 

This new regime aims to broaden the country’s tax base and ensure tax compliance across the informal sector.

Florence Asante, Head of Communication and Public Affairs at the GRA, highlighted that the new system will simplify tax assessment and reduce compliance costs, particularly for disadvantaged taxpayers. 

She explained that the Modified Taxation system is designed to make it easier for informal workers, such as hairdressers, tailors, and nail technicians, to register and pay taxes in installments, encouraging even small contributions.

At a workshop for the Parliamentary Press Corps during GRA’s Tax Education Month, Asante noted that the policy would be implemented next year after extensive stakeholder engagement to ensure smooth adoption.

To address tax evasion and under-declaration, Asante emphasized a shift from traditional enforcement to a more customer-centric approach, aimed at making taxpayers feel positive about their obligations. 

The GRA is also leveraging technology to streamline processes like business registration, filing returns, and tax payments, ensuring that almost all domestic tax and customs operations can be completed online, reducing the need for in-person visits to GRA offices.

By Eugene Davis

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