By Lord Fiifi Quayle

The Ghana Revenue Authority (GRA) is embarking on a transformative journey to broaden the tax net and foster a culture of voluntary compliance, particularly within the informal sector. This sustained effort, underpinned by robust public education and the introduction of the Modified Taxation Scheme (MTS), signals the government’s commitment to building a more inclusive and equitable tax system where every citizen contributes their fair share to national development. The GRA is not just collecting taxes; it is actively working to demystify the process and ensure that every Ghanaian is “on board”.

Sustained Tax Education: The Foundation of Compliance

The GRA’s efforts are anchored by the Sustained National Tax Education Programme, a multi-year initiative running from 2025 to 2028 . This is not a one-off campaign but a continuous, nationwide drive designed to embed tax education into Ghana’s social consciousness . The core objective is to equip citizens with the practical knowledge needed to navigate the tax landscape, specifically focusing on how to register, file returns, and make payments .

The program employs segmented communication strategies, recognizing that a one-size-fits-all approach is ineffective. This ensures that the message is tailored and delivered effectively to diverse groups, from market traders in the informal sector to small business owners and professionals . By simplifying complex tax concepts and making information readily accessible, the GRA is actively working to remove the fear and confusion often associated with taxation, thereby fostering a culture of voluntary compliance. The MTS, which was launched alongside this education drive, is a direct beneficiary of this foundational work.

The Modified Taxation Scheme (MTS): Simplifying Compliance

The MTS is a simplified tax regime designed primarily for small-scale businesses and individuals in the informal sector whose annual turnover falls below a certain threshold. The scheme aims to make tax payment less burdensome, more predictable, and easier to comply with, thereby integrating this vital segment of the economy into the formal tax system. The MTS is structured into three main categories, offering flexibility based on the nature and size of the business : MTS Category Target Group/Basis Key Feature Presumptive Tax Based on Instalment (PTI) Smallest businesses/individuals with fixed income levels. Tax is a fixed amount, paid in regular instalments, based on income levels and business activity. This provides certainty and ease of budgeting for the taxpayer . Presumptive Tax Based on Turnover (PTT) Businesses with slightly higher, but still modest, annual turnover. Tax is calculated as a percentage of the business’s gross annual turnover. This method links the tax liability directly to the business’s sales performance . Modified Cash Basis Businesses that do not qualify for the presumptive tax categories. This method allows for a simpler accounting approach where income and expenses are recognized only when cash is received or paid out, simplifying record-keeping compared to the traditional accrual basis.

The GRA’s strategy is clear: by offering a simplified, sector specific approach, it removes the complexity often associated with formal taxation, encouraging voluntary participation and widening the tax base.

Digital Convenience: Paying Taxes at Your Fingertips

A cornerstone of the GRA’s modernization drive is the introduction of convenient, digital payment channels. Recognizing the ubiquity of mobile technology in Ghana, the GRA has deployed solutions that allow taxpayers to meet their obligations from anywhere, at any time [3].

1. MTS Taxpayers App: Available on both the Google Play Store and the Apple App Store, this mobile application streamlines the entire tax process. It allows taxpayers to register, track compliance, initiate payments, and access other tax related services directly from their smartphones .
2. USSD Shortcode (*880#): For those without a smartphone or preferring a quick, non-internet-based method, the GRA has introduced the *880# shortcode. By simply dialling this code, taxpayers can make payments using their Mobile Money wallets, ensuring that tax compliance is accessible to everyone, regardless of their technological sophistication .

These digital tools are a testament to the GRA’s commitment to efficiency and accessibility, transforming the act of paying taxes from a cumbersome annual chore into a simple, secure, and instant transaction.

Government’s Fiscal Relief: Giving Back to the Citizenry

In a significant move to alleviate the financial burden on businesses and ultimately benefit the consumer, the government has recently abolished several key levies and taxes. This fiscal relief package is a direct measure to stimulate economic activity and demonstrate the government’s commitment to supporting the private sector .

The abolished levies include:

• The COVID-19 Health Recovery Levy
• The Betting Tax
• The Electronic Transfer Levy (E-levy)

Furthermore, the government has decoupled the 2.5% GETFund Levy and the 2.5% National Health Insurance Levy (NHIL) from being treated as a cost to businesses. Previously, these levies were factored into the cost of goods and services, contributing to higher prices for the final consumer. By removing this burden on businesses, the government expects that the reduction in operational costs will be passed on to the consumer in the form of lower prices .

This strategic fiscal intervention is a powerful demonstration of the government “giving back to the citizens.” The removal of these cost components means that businesses now have a reduced cost base, which should, in turn, not reflect in prices paid by the consumer. This is a deliberate policy to ease the cost of living and ensure that the benefits of fiscal prudence are directly felt by the Ghanaian populace.

Conclusion

The GRA’s sustained tax education and the implementation of the Modified Taxation Scheme, coupled with the government’s decisive action on tax abolition, mark a pivotal moment in Ghana’s fiscal landscape. By simplifying compliance, embracing digital technology, and providing tangible fiscal relief, the GRA is not only expanding the tax net but is also fostering a partnership with the citizenry. A partnership built on transparency, convenience, and a shared vision for national prosperity. The message is clear: tax compliance is now easier, more accessible, and more vital than ever before.

GHANA MUST WORK AGAIN