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Business News of Thursday, 26 August 2021


Tax revenue: Find simpler ways to encourage informal sector – Dr Bawumia to GRA

Vice President, Dr. Mahamudu Bawumia Vice President, Dr. Mahamudu Bawumia

• The GRA has been urged to design a modified tax system

• This is aimed at roping in the informal sector in the tax base

• The informal sector contributes largely to the overall GDP growth

Vice President Dr Mahamudu Bawumia has admonished officials of the Ghana Revenue Authority to design and implement a modified taxation system for the large informal sector.

This, he believes, is necessary to enable the sector which largely contributes to the overall Gross Domestic Product growth of the country to easily fulfill their tax obligations.

Making the call at the launch of the Revenue Assurance, Compliance and Enforcement (RACE) initiative in Accra, Dr Bawumia urged for a much-simplified tax enforcement and compliance regime targeting the retail and micro small mediums enterprises.

“This group includes most of our market women, and the artisans in the informal sector. This group of potential taxpayers are outside the scope of RACE," Bawumia said.

He continued, “For these group of citizens, the issue is not with their tax evasion or tax avoidance. And their non-compliance may have more to do with their tax education and how assessment and collection are enforced. Let us find simpler ways to encourage tax compliance at this basic level.”

The vice president on the other hand assured that government will continue to create a much conducive environment to simplify tax assessment and reduce the cost of compliance to large taxpayers.

The RACE initiative is aimed at increasing increase domestic revenue mobilization towards a more financially dependent country and providing an oversight role in the Ghana Revenue Authority’s effort at taxpayer compliance.