Asantehene Otumfuo Osei Tutu II has called on the Ghana Revenue Authority (GRA) to intensify efforts to bring more individuals and businesses in the informal sector into the tax system. He made the appeal during a courtesy call on the GRA Board and Management at the Manhyia Palace.
Informal Sector Holds Key to Ghana's Revenue Growth
The Asantehene noted that while the GRA had made progress in revenue collection under its current leadership, significant opportunities remained within the informal sector that could help expand the country's revenue base. He emphasized the need for Ghana to generate sufficient domestic revenue through taxation to finance its development rather than consistently relying on external funding.
The informal sector, which includes groups such as hairdressers, mechanics, and drivers, has traditionally been outside the tax net. Otumfuo Osei Tutu II suggested that these groups could be encouraged to form cooperatives as a way of making it easier to identify and integrate them into the tax system.
GRA Urged to Explore Innovative Approaches
The Asantehene also called on the GRA to explore innovative approaches to tax collection while strengthening existing mechanisms to minimize revenue leakages. He commended the Authority's current leadership for improvements in revenue mobilization but urged them to intensify efforts to address remaining gaps.
GRA officials, including the Board Chairman Ricketts Hagan and the Commissioner-General, have been working on several tax reforms aimed at improving revenue collection and strengthening tax administration. However, the reforms have attracted concerns from some members of the business community, prompting calls for broader stakeholder engagement.
Public Support Crucial for Tax Reforms
The GRA is implementing several new systems, including Publican AI, to improve revenue mobilization and tax administration. While some individuals have raised concerns about comprehending the system, GRA officials are working to address these issues and ensure the effective implementation of the reforms.
As the GRA continues to work on its tax reforms, the Asantehene's call for intensified efforts to bring more individuals and businesses in the informal sector into the tax system remains a crucial step towards expanding Ghana's revenue base. The success of these efforts will depend on the GRA's ability to engage stakeholders and implement effective measures to minimize revenue leakages and promote public support for the reforms.
Source: Joy Online
