Make tax system fairer to boost compliance – Vice President

Vice President Professor Naana Jane Opoku-Agyemang has advocated for a simpler and fairer tax system in Ghana to boost compliance among individuals and businesses. She emphasized that taxpayers are more likely to adhere to tax rules when they understand them, receive excellent service, and trust that public funds are managed responsibly. The call for reform came during the 14th Annual International Tax Conference in Accra.

Professor Opoku-Agyemang stated that the government is reforming the tax system to decrease the financial burden on households and businesses while simultaneously generating sufficient revenue to support national development. She explained that people are more inclined to comply when they perceive the system as equitable. The Vice President outlined several reforms the government has undertaken, including the abolition of certain taxes that have become a burden and substantial changes to the Value Added Tax (VAT) system through the Value Added Tax Act, 2025.

The reforms are being bolstered by heightened use of technology and data to enhance tax administration. Ghana is also focusing on improving the taxation of cross-border digital transactions and implementing electronic devices to strengthen compliance. Professor Opoku-Agyemang urged the Ghana Revenue Authority (GRA) to improve taxpayer education, consultation, and service delivery.

She also called for the integration of the informal sector into the tax system in a practical way and appealed to tax professionals to assist businesses and individuals in understanding their tax obligations.

The Commissioner-General of the GRA, Mr Anthony Kwasi Sarpong, highlighted the Authority's use of technology to expand the tax net, including linking its systems with those of the Office of the Registrar of Companies, DVLA, and the Passport Office. This enables newly registered businesses to be automatically included in the tax system.

Mr Sarpong also mentioned the GRA's initiatives to simplify tax payment, such as the Modified Taxation App, which requires basic information from taxpayers and calculates a 3% tax on turnover for eligible businesses. The VAT registration threshold has been raised to GH¢750,000, alleviating the registration and monthly filing burden for many small businesses.

The GRA is collaborating with financial institutions to provide credit to businesses that cannot afford to pay taxes required to clear goods at ports, enabling them to trade while repaying loans, thereby generating revenue for the government. Mr Sarpong emphasized that the GRA is adjusting its approach to tax administration.