Accra, June 2025 — The Ghana Revenue Authority (GRA) is set to launch a modified tax system for the informal sector beginning July 1, aimed at expanding the tax net and simplifying payment for thousands of small-scale workers.
Under the revamped framework, informal workers with annual sales under GHS 20,000 who are not yet registered with the GRA will pay a fixed quarterly tax ranging from GHS 25 to GHS 45, replacing the previous complex collection methods.
At the launch of the report titled “Ghana’s Untapped Economy: Analysis of Tax Compliance Behaviour of Informal Sector Workers in the Greater Accra Region”, Dr. Alex Kombat, Assistant Commissioner for Research and Policy at GRA, explained the rationale behind the change:
“Our modified taxation system introduces fixed payments for those earning below GHS 20,000. For informal operators with turnovers between GHS 20,000 and GHS 500,000, a 3% tax on turnover will apply. This shift promotes fairness and widens our tax base,” Dr. Kombat stated.
Collaboration Key to Success
Jennifer Moffatt, Country Manager at BudgIT Ghana, emphasized the critical role of local governments in this initiative:
“Informal workers often prefer paying local authorities over the GRA. We recommend stronger partnerships between the GRA and Metropolitan, Municipal, and District Assemblies (MMDAs) to improve compliance,” she said.
Esi Sam, Chairperson of the Society of Women in Taxation Ghana, applauded the simplified tax structure:
“Simplifying tax processes makes compliance easier and more transparent. The new system will empower informal workers by making tax payments straightforward and understandable,” she noted.
Looking Ahead
The GRA’s new policy promises a more inclusive and effective approach to revenue collection, targeting a sector that has traditionally been difficult to regulate. As the July 1 rollout approaches, public education and media support will be vital to its success.
With this reform, Ghana takes a significant step toward harnessing the full potential of its informal economy and strengthening its fiscal foundation.
Source:Mybrytfmonline.com/Gumedzo Isaac Acheampong
