Asantehene urges GRA to widen tax net to informal sector

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Asantehene Otumfuo Osei Tutu II has urged the Board and Management of the Ghana Revenue Authority (GRA) to expand the tax net to cover more individuals and businesses in the informal sector to boost domestic revenue.

The Asantehene commended the current leadership of the GRA for the progress made in revenue collection but called for stronger measures to tackle tax leakages and innovative approaches to mobilising revenue.

He stressed that Ghana must strengthen domestic revenue generation through taxation if the country is to finance its development without relying heavily on external funding.

Otumfuo Osei Tutu II made the call when the Board and Management of the GRA paid a courtesy call on him at the Manhyia Palace.

He said a significant amount of revenue remained untapped in the informal sector and urged the Authority to step up efforts to bring more individuals and businesses into the formal tax system.

“The focus has always been on workers in the formal sector, while there are many others in the informal sector who can be educated on the need to pay taxes to support national development,” he said.

The Asantehene proposed that groups such as hairdressers, mechanics and drivers could be encouraged to form cooperatives, making it easier for them to be identified and incorporated into the tax system.

He also encouraged the GRA to consider unconventional approaches to tax collection while improving existing systems.

“I have observed an improvement in revenue collection since the current Board and Management took over. This is due to the policies you have put in place. Despite these gains, some leakages still exist, and I urge you to work at addressing them,” he said.

Otumfuo further called on GRA officials to support the Authority’s leadership as it works to fulfil its mandate of mobilising revenue for national development.

The GRA is currently implementing several tax reforms aimed at improving revenue collection and strengthening tax administration in the country.

However, some members of the business community have raised concerns about aspects of the reforms, leading to calls for broader stakeholder engagement.

The Board Chairman of the GRA, Ricketts Hagan, said the Authority was engaging stakeholders to promote a smooth and effective implementation of the reforms.

He pointed to the introduction of new systems, including Publican AI, as part of efforts to improve revenue mobilisation and tax administration.

“There are new systems, including the Publican AI, which have been helping our efforts. I’m sure you heard noise about not being able to comprehend, but people are beginning to understand the system,” he said.

The Commissioner-General of the GRA also outlined some of the reforms being introduced by the Authority and appealed to the public to support their implementation.

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