Asantehene urges GRA to widen tax net to informal sector

Asantehene Otumfuo Osei Tutu II has called on the Board and Management of the Ghana Revenue Authority (GRA) to broaden the tax net to incorporate more informal sector individuals and businesses, in order to increase the nation's domestic revenue. He praised the existing GRA leadership for the improvements made in revenue collection, but stressed the need for stronger measures to combat tax leakages and innovative strategies for revenue mobilisation.

The Asantehene emphasized the importance of domestic revenue generation to finance Ghana's development without excessive reliance on external funding. During a courtesy call at Manhyia Palace, Otumfuo Osei Tutu II highlighted the untapped potential in the informal sector and advised the Authority to focus on educating and including more individuals and businesses in the formal tax system.

He suggested forming cooperatives for groups such as hairdressers, mechanics, and drivers to facilitate their inclusion in the tax system. Otumfuo also encouraged the GRA to explore unconventional tax collection methods while enhancing existing systems. He acknowledged progress in revenue collection under the current leadership but expressed concern over residual leakages and urged the GRA to address them.

The GRA is currently implementing tax reforms to improve revenue collection and strengthen tax administration. However, some business community members have expressed concerns about the reforms, prompting calls for greater stakeholder engagement. GRA Chairman Ricketts Hagan stated that the Authority is actively engaging stakeholders to ensure smooth and effective implementation of the reforms, mentioning the introduction of new systems like Publican AI to enhance revenue mobilisation and tax administration.

The Commissioner-General of the GRA appealed to the public to support the Authority's efforts in reform implementation.