The Ghana Revenue Authority (GRA) has launched two new tax administration initiatives: a modified taxation scheme and sustained tax education aimed at increasing tax revenue for the country to support national development.
It is expected that these two initiatives will rope in more than two million taxpayers into the tax net during the first year of implementation alone and potentially increase domestic tax revenue by about GH¢10 billion annually.
At the launch of the initiatives, the Chief of Staff, Julius Debrah who represented President John Dramani Mahama as the guest of honour while commending the GRA for such a bold initiative, drew the attention of the Authority to night businesses since the 24-hour economy is entering full force.
Julius Debrah expressed confidence of achieving this year’s tax revenue target of GH¢189 billion, disclosing that, as of September 2025, the Authority had already collected GH¢180.6 billion, and the new schemes were expected to help close the gap.
“With the launch of the MTS and the tax education drive, I am confident we will meet our target,” he said.
He also reminded citizens that taxes are the backbone of national development.
“We build roads, equip our security agencies, and drive growth through the taxes we pay. National development depends on our collective contribution, he added.
Boosting the tax-to-GDP ratio
The Acting Commissioner General of the Ghana Revenue Authority, Anthony Sarpong, believes that the new initiatives will boost the tax-to-Gross Domestic Product ratio in the next three years.
“We have done some analysis and know that there is potential in the informal sector, such that if we’re able to get at least two million taxpayers every year, there will be more to be added to the tax net. This is a sector with about eight million businesses and individuals, so the first three years, which will be the first phase, will have about two million people on board, and in the next three years, we can boost our domestic revenue,” he said.
Modified Taxation Scheme
“The Modified Taxation Scheme offers a fair, predictable, and convenient way for micro, small, and medium businesses to comply with tax laws. It reduces bureaucracy, limits discretion, and builds trust between taxpayers and the GRA,” Mr. Sarpong stated.
Under the scheme, individuals and businesses with annual incomes not exceeding GH¢500,000 annually will pay a flat rate of 3%. For instance, a business earning GH¢200,000 annually will pay GH¢6,000, while someone earning GH¢25,000 will contribute GH¢750 in taxes.
Mr. Sarpong explained that the MTS simplifies every step of compliance from registration to payment making it easier for traders, artisans, and small shop owners to fulfil their civic responsibilities without the usual bureaucratic hurdles.
“This will bring convenience to small enterprises and enhance domestic revenue mobilisation for national development,” he added.
Sustained Tax Education
The Sustained Tax Education Programme, also unveiled at the event, seeks to nurture a culture of voluntary tax compliance. Through a three-year national plan, the programme will equip citizens with practical knowledge on how to register, file, and pay taxes correctly and on time.
The education campaign goes beyond traditional outreach — targeting markets, schools, universities, professional associations, and digital platforms. The goal, according to the GRA, is to make tax education part of Ghana’s social consciousness.
“When citizens understand the value of paying taxes, compliance becomes a natural choice not an obligation enforced by law,” Mr. Sarpong emphasized.
Deputy Minister of Finance, Thomas Nyarko Ampem, praised the initiative, noting that it targets Ghana’s vast informal sector, which accounts for about 80% of the economy.
“Compliance has been low over the years, but with the MTS and sustained tax education, we are changing that narrative,” he said.
He added that improving domestic revenue collection is key to achieving Ghana’s medium-term fiscal goals, stressing that tax compliance is a shared national responsibility involving government, private businesses, traditional authorities, and citizens alike.
Ghana card key to enhancing tax compliance
Meanwhile, the Country Managing Partner of Deloitte Ghana, Daniel Kwadwo Owusu, has proposed the adoption of the Ghana card as a key tool to boost tax compliance and rake in more revenue for the country.
He explains that the national identification system provides a unique opportunity to integrate data and improve tax compliance.
According to him, leveraging the Ghana card will help expand the country’s tax base, especially within the informal sector, where compliance has traditionally been low.
“Fortunately, our Ghana card captures everybody. Everybody uses the Ghana card. So, it should be possible for us to be able to track it,” he stated while speaking at the 2025 Deloitte Africa Annual Tax Conference in Accra, last week.
He added, “If you have not filed your returns at a certain point in time, when you use your Ghana card, that should flag it. It should show that something is missing that you have not done.”
He noted that with every citizen and resident linked to a Ghana card, the system could serve as a reliable mechanism to identify taxable individuals and enhance transparency in revenue collection.
By Adnan Adams Mohammed
