By Jones Anlimah
The Ghana Revenue Authority (GRA) has launched a renewed tax education campaign aimed at improving voluntary compliance among taxpayers, particularly within the informal sector, under the Modified Taxation Project.
Mr. Dominic Adamnor Nartey, Chief Revenue Officer and a member of the Modified Taxation Implementation Committee, disclosed this during a tax education session in Ho on the topic “Modified Taxation: Presumptive Tax Based on Installment or Tax Stamp, Presumptive Tax Based on Turnover, and Modified Cash Basis.”
He explained that the initiative forms part of a three-year aggressive sensitisation programme launched by the President under the Sustained Tax Campaign. The campaign seeks to address the low levels of tax compliance among Ghanaians.
“Currently, less than 30 percent of the population pay their taxes, and that is not good enough,” Mr. Nartey said. “We want to move away from enforcement-type compliance to voluntary compliance, which comes at a lower cost to both the taxpayer and the Authority.”
He noted that the GRA is focusing on education rather than enforcement to help taxpayers understand their obligations and the benefits of compliance. “The more you educate taxpayers to know their rights and responsibilities, the easier it becomes for them to comply,” he stated.
The Modified Taxation system, first introduced in 2015, has been redesigned to simplify tax payment and filing procedures for small businesses and informal sector operators, who make up about 70 percent of Ghana’s business population.
According to Mr. Nartey, the new framework categorises taxpayers into three groups:
- Presumptive Tax Based on Installment:
Businesses earning below GH₵20,000 annually will pay between GH₵25 and GH₵45 per quarter, depending on turnover. - Presumptive Tax Based on Turnover:
Businesses with annual turnover between GH₵20,001 and GH₵500,000 will pay 3 percent of their turnover as tax. - Modified Cash Basis:
Taxpayers within the same turnover range who maintain proper records may deduct expenses and pay tax on net profit using progressive rates similar to Pay-As-You-Earn (PAYE).
Mr. Nartey emphasized that the Modified Taxation system has been made “simple and convenient” to encourage wider participation.
“We have simplified the filing process, the payment process, and everything concerning tax compliance,” he said. “Now, you can register on your own using your Ghana Card, telephone number, and GPS address through the GRA app.”
During the session, participants were educated on the new system and taught how to register using their mobile phones via the GRA app. Officers from the GRA guided attendees through the registration and payment processes, including how to make payments by dialing *880#.
“You don’t need to visit our offices before paying your tax,” Mr. Nartey noted. “Just dial the short code, follow the prompts, and you are good to go. You can even file your returns from your phone.”
He appealed to the informal sector operators to take advantage of the simplified system, adding that their contribution was vital to national development.
“If every small business pays as little as GH₵25, GH₵35, or GH₵100 a quarter, Ghana can mobilize enough revenue for development,” he emphasized.
The GRA hopes to increase tax compliance from the current 30 percent to between 70 and 80 percent within the next three years through sustained education, digitalisation, and taxpayer engagement.
