A new tax scheme is being planned and implemented by officials of the Ghana Revenue Authority.
Ghana’s vast informal sector to make it simpler for them to fulfill their fiscal duties towards the State.
Mahamoudu Bawumia, Vice President, who called on Wednesday 25 August 2021, said that, although the government is committed to a favorable environment,
This would streamline taxation and minimize compliance costs for big tax payers, and simplify retail and micro-level enforcement and compliance.
And their failure to comply may be more related to their tax training and how evaluations and collections are enforced.
Support for tax compliance at this core level is easier.”
At the inauguration of the RACE initiative, Vice President Bawumia said. It is intended to enhance the mobilization of domestic income.
This is designed to solve the economic problems posed by the Covid 19 epidemic and increase Ghana’s budgetary independence.
Citing the World Bank’s recent report (November 2020) showing possible tax collections from single proprietors.
In creating the proposed amended taxation structure, Dr Bawumia requested the MoF and the GRA to examine the specific properties of the informal sector.
The request that such enterprises produce documents for an audit for the previous three or four years is a futile exercise and is seen as harassing.”
We must thus simplify their tax assessment on income or profit.
An alternative to include tiny companies, which should cover most female shopkeepers and many in the informal sector, is to employ a flat tax structure under an amended taxation system.
In addition, under the amended tax system choose for a flat rate depending on turnover.
We believe a simpler flat tax will enable more retailers to evaluate their tax responsibilities better
After all, make payments without excessive human contact and a strict audit system,” he said.