The Ghana Revenue Authority (GRA) has introduced a new Modified Taxation Scheme (MTS) aimed at making tax registration and payment more accessible, efficient, and transparent for businesses in the informal sector.

The initiative, launched together with a Sustained Tax Education Programme, seeks to bring thousands of small and medium enterprises (SMEs) into the national tax net while improving understanding of tax compliance across the country.

Speaking at the launch in Accra, Commissioner-General of the GRA, Anthony Kwasi Sarpong, said the new scheme reflects the Authority’s commitment to modernising tax administration through technology and simplification.

“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 earning up to GHC500,000 annually will pay a flat tax rate of 3 percent.
For instance, a business making GHC200,000 a year will pay GHC6,000, while someone earning GHC25,000 will contribute GHC750 in taxes.

Mr Sarpong explained that the MTS streamlines the compliance process—from registration to payment—making it easier for traders, artisans, and small business owners to fulfil their tax obligations without the usual bureaucracy.

“This will bring convenience to small enterprises and enhance domestic revenue mobilisation for national development,” he added.

The Sustained Tax Education Programme, launched alongside the MTS, is designed to nurture a culture of voluntary tax compliance. Under a three-year national plan, the programme will provide citizens with practical training on how to register, file, and pay taxes accurately and on time.

Unlike traditional outreach, the campaign will target markets, schools, universities, professional associations, and digital platforms, integrating tax awareness into everyday social life.

“When citizens understand the value of paying taxes, compliance becomes a natural choice — not an obligation enforced by law,” Mr Sarpong said.

Deputy Minister of Finance, Thomas Nyarko Ampem, welcomed the initiative, noting that it directly targets Ghana’s vast informal sector, which accounts for about 80 percent 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 boosting domestic revenue mobilisation is critical to achieving Ghana’s medium-term fiscal targets, stressing that tax compliance is a shared national duty involving government, businesses, and citizens alike.

Representing President John Mahama as guest of honour, Chief of Staff Julius Debrah commended the GRA for its innovation in tax collection and expressed optimism that the Authority would meet its GHC189 billion revenue target for the year.

He disclosed that as of September 2025, the GRA had already collected GHC180.6 billion, with the new tax scheme 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,” Mr. Debrah said.

“We build roads, equip our security agencies, and drive growth through the taxes we pay. National development depends on our collective contribution,” he added.

The MTS is not a new tax but a simplified form of personal income tax targeted at informal sector workers whose incomes are generated solely within Ghana and who are not registered for VAT.

The system operates through a digital platform, accessible via the MTS mobile app or by dialling *880#.
Users can register using their Ghana Card, digital address, phone number, and business details, and make payments easily through mobile money.

With this initiative, the GRA aims to transform tax compliance into a simple, transparent, and technology-driven process, ensuring every cedi paid contributes directly to Ghana’s development.

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