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14.01.2017 Business & Finance

New tax law must reconsider focus on informal sector – Analyst

By CitiFMonline
New tax law must reconsider focus on informal sector – Analyst
LISTEN JAN 14, 2017

Adopting modern revenue collection systems and efficient use of tax revenue should be a priority for the GRA if it is to broaden its tax base.

This is the advice from some tax analysts.
The suggestion follow what the analysts believe is a drawback in attempts to widen the tax net and increase government's revenue.

“Why can't the GRA come out with an e-paymnet platform where there can be a mobile money number assigned to a particular GRA office for payment of taxes and also close to the tax payer in the informal sector?” tax Consultant William Owusu Demetia queried.

He added, “Telling the person to go to the various tax paying centres to pay the tax will be inconveniencing most of the informal sector workers. The tax revenue collection must be brought closer to the taxpayer.”

Among the key objectives of the New Income Tax Act 896 is to broaden the tax base and enhance efficiency and facilitate compliance.

But with a year of its implementation, Mr. Owusu Demetia further explained to Citi Business News an overhaul of the current system with the informal sector should push the GRA towards its target for the year.

“If the person sits in a market where the conditions are bad, he or she will not be motivated to pay more. Government must therefore work out a system such that a portion of whatever revenue is used to develop the working conditions so people will see the need to pay taxes.”

Meanwhile he has urged the GRA to continue with policy dialogue and educate stakeholders on major changes to the law.

In his view, this would facilitate compliance and translate in revenue mobilization.

By: Pius Amihere Eduku/

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