Widen tax net to informal sector – Otumfuo urges GRA
Asantehene Otumfuo Osei Tutu II has urged the Board and Management of the Ghana Revenue Authority (GRA) to widen the tax net to cover more individuals in the informal sector to help increase revenue for national development.
The Asantehene, while commending the current leadership of the GRA for improvements in revenue collection, urged the Authority to strengthen measures to address tax leakages and explore innovative approaches to revenue mobilisation.
He stressed the need for Ghana to generate sufficient domestic revenue through taxation to finance development rather than consistently relying on external funding.
Otumfuo Osei Tutu II made the call when the Board and Management of the GRA paid a courtesy call on him at the Manhyia Palace.
He urged the Authority to intensify efforts to bring individuals and businesses in the informal sector into the tax system, noting that significant revenue potential remained untapped.
“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.
The Asantehene suggested that groups such as hairdressers, mechanics and drivers could be encouraged to form cooperatives to make it easier for them to be integrated into the tax system.
He also urged the GRA to explore unconventional methods of tax collection while strengthening existing mechanisms.
“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.
Otumfuo Osei Tutu II further urged officials of the GRA to support the Authority's leadership in delivering on its mandate to mobilise revenue for the country.
The GRA is currently implementing a number of tax reforms aimed at improving revenue collection and strengthening the country's tax administration system.
The reforms have, however, generated concerns among some members of the business community, prompting calls for greater stakeholder engagement.
The Board Chairman of the GRA, Ricketts Hagan, said the Authority was engaging stakeholders to ensure the effective implementation of the reforms.
He cited the introduction of new systems, including Publican AI, as part of measures to improve revenue mobilisation and tax administration.
“There are new systems, including the Publican AI, which have been helping our efforts. I'm sure you heard noise about not being able to comprehend, but people are beginning to understand the system,” he said.
The Commissioner-General of the GRA also outlined some of the new reforms being pursued by the Authority and called for public support for their implementation.