Kasoa: Mrs Cecelia Boafo, the Head of the Kasoa Taxpayer Service Centre (TSC), Ghana Revenue Authority (GRA), has called on the informal sector operators to comply with tax obligations as part of efforts to boost revenue and support national development. She stated that most economic activities in Kasoa fall within the informal sector, making it challenging to ensure tax compliance. The Manager of Kasoa TSC made these remarks during an engagement with traders at the Kasoa new market in the Central Region.
According to Ghana News Agency, the engagement was themed 'Know Your Taxes, Pay Your Taxes, Let's Build Ghana,' forming part of the Tax and Good Governance Month organised by the GRA annually in April. Mrs Boafo noted that tax compliance is a significant challenge within the informal sector, where many small businesses fail to file returns or pay the required taxes. She explained that the GRA, in collaboration with its Head Office, has taken the campaign directly to traders and small business operators to educate and sensitize them on their responsibilities.
The Authority has introduced a Modified Taxation Scheme tailored for small-scale taxpayers, including options such as installment payments and turnover-based taxation, to facilitate easier compliance. Under this scheme, businesses are required to pay a percentage of their annual turnover, representing an improved version of the previous tax stamp arrangement. Mrs Boafo expressed concern over low compliance in filing tax returns, noting reluctance despite repeated appeals. She emphasized that taxes are vital for national development, funding infrastructure like roads, schools, and other public services.
Furthermore, the GRA has extended its education campaign to institutions such as schools, where some employers have been found under-declaring Pay-As-You-Earn (PAYE) taxes. Mrs Boafo urged all taxpayers to fulfill their obligations, stressing that collective compliance would significantly contribute to building a better Ghana.
Mr. Kwame Damoah-Siakwan, the Deputy Head of Kasoa TSC, GRA, also urged individuals and businesses to register with the Authority, highlighting that registration is the first step to ensuring tax compliance. He noted that the GRA has introduced digital systems for properly registering and tracking taxpayers, replacing previous methods lacking comprehensive records. Once registered, taxpayers are required to file returns and pay taxes based on their business nature, including income tax and employee-related taxes.
Mr. Damoah-Siakwan explained that employers are mandated by law to deduct PAYE taxes from their workers' salaries and remit them to the Authority, acting as agents of tax collection. He warned that failure to deduct and remit such taxes is an offence under the law. Additionally, he stated that Value Added Tax (VAT) is a consumption tax paid by customers, which businesses must collect and remit to the GRA within stipulated timelines. He emphasized that all tax obligations are guided by law, with penalties imposed on taxpayers who fail to meet filing and payment deadlines. He urged all income earners to comply with tax regulations, noting that timely payment and filing are essential for effective revenue mobilization and national development.