GRA must tackle tax leakages and expand informal sector taxation – Asantehene

Asantehene Otumfuo Osei Tutu II has implored the Ghana Revenue Authority (GRA) to enhance its efforts in incorporating informal sector individuals and businesses into the tax system to bolster domestic revenue for national development. While acknowledging the GRA's progress under current leadership, the Asantehene emphasized the untapped potential within the informal sector to expand the country's revenue base.

Expressing concern over the ongoing reliance on external funding, Otumfuo stressed the need for Ghana to generate sufficient domestic revenue through taxation instead.

Traditionally, tax collection has focused on workers and businesses in the formal sector, leaving significant economic activity in the informal sector outside the tax net. The Asantehene proposed that groups such as hairdressers, mechanics, and drivers could be encouraged to form cooperatives to facilitate their integration into the tax system. He also urged the GRA to explore innovative tax collection approaches and strengthen existing mechanisms to minimize revenue leakages.

Acknowledging improvements in revenue mobilization under the current GRA leadership, Otumfuo called for intensified efforts to address remaining gaps. He commended the Authority's recent policies but urged further action to tackle the identified issues. The GRA Board Chairman, Ricketts Hagan, assured that the Authority is actively engaging stakeholders to ensure the effective implementation of ongoing tax reforms, including the introduction of new systems like Publican AI to enhance revenue mobilization and tax administration. Hagan appealed for public support in the execution of these reforms.