{"id":58704,"date":"2023-11-04T16:34:36","date_gmt":"2023-11-04T16:34:36","guid":{"rendered":"https:\/\/www.africa-press.net\/ghana\/?p=58704"},"modified":"2023-11-04T15:38:37","modified_gmt":"2023-11-04T15:38:37","slug":"government-urged-to-create-strong-measures-that-motivate-informal-sector-to-pay-tax","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/ghana\/all-news\/government-urged-to-create-strong-measures-that-motivate-informal-sector-to-pay-tax","title":{"rendered":"Government urged to create strong measures that motivate\u00a0informal sector to pay tax"},"content":{"rendered":"

Africa-Press – Ghana. <\/strong><\/span>The managers of Ghana\u2019s economy have been entreated to use strong, robust and creative means to encourage the 90 percent of the population in the informal sector to pay their taxes. <\/b><\/p>\n

\u201cAbout 10 percent of Ghana\u2019s tax contribution to Gross Domestic Product (GDP) which came from the formal sector was inadequate to generate critical revenue for development, a steering committee member of Revenue Mobilization Africa (RMA)\u201d, Mr. Leonard Shang- Quartey, has said.<\/p>\n

Mr. Shang-Quartey was speaking at day\u2019s forum on improving tax responsibility and effectiveness in Ghana organised by Ghana Anti-Corruption Coalition (GACC), in Partnership with Friends of the Nation and the RMA for women-owned businesses in Takoradi in the Western Region.<\/p>\n

The event was part of a project titled \u201cPromoting Progressive Taxation Compliance in Ghana\u201d funded by the OXFAM in Ghana.<\/p>\n

Mr. Shang-Quartey told participants that while, Ghana\u2019s tax contribution to GDP was about 13 percent, that of Tunisia was 32. 5 percent, saying, \u201cwe must do something better, because what we spend, is the same as the revenue we collect.\u201d<\/p>\n

He said: \u201cAs a country, we have serious problems with revenue generation. We need revenue for our development and so we have a heavy challenge. Over the past five years, we have performed under 15 percent. We need to make the informal sector active and be encouraged even to formalize their businesses.<\/p>\n

\u201cPeople make deliberate efforts to dodge taxes. And so, we have under reporting, transfer pricing manipulation, bribery and corruption, false declaration, non- remittance of tax withheld. All these put together make it difficult for the government to rake in revenue from taxes.\u201d<\/p>\n

Mr Shang -Quartey noted that key challenges on compliance issues included complex tax regulation, high compliance cost, lack of clarity in tax policies, taxpayers\u2019 ignorance or misunderstanding, non-availability of required documentation and taxpayers\u2019 perception of fairness and trust.<\/p>\n

Mr Shang-Quartey suggested taxpayers\u2019 education to promote compliance, reduce errors and non-compliance, enhance trust and confidence, empower taxpayers and also encourage voluntary compliance.<\/p>\n

He said: \u201cWhen taxpayers have a clear understanding of where their taxes go and how they contribute to development of the country, it builds confidence in the government\u2019s use of tax revenue. They are also likely to comply voluntarily without the need for excessive enforcement measure including harassment.\u201d<\/p>\n

He emphasized the use of technology to enhance tracking of taxpayers, improve online filing and payment systems, reduce administrative burdens and improve communication and taxpayers services.<\/p>\n

\u201cAgain, we need to simplify tax forms and procedures, improve taxpayers\u2019 guidance and support, risked based compliance approaches and training and capacity building to streamline the bureaucratic processes,\u201d Mr Shang-Quartey stressed.<\/p>\n

He encouraged participants to speak up for reforms in tax administration so that the informal sector would be roped in tax revenue mobilization.<\/p>\n

He said Ghana\u2019s pursuit of a fairer and more effective tax system called for a multifaceted approach to overcome the prevailing challenges such as the informal economic activities, tax evasion and compliance concerns.<\/p>\n

\u201cGhana is poised to realize its objective of funding essential sector and driving economic development, thereby building a foundation for sustainable progress and ensuring the optimal utilization of tax revenue for nations advancement,\u201d he added.<\/p>\n

Executive Secretary,GACC,Mrs Beauty Emefa Narteh, also spoke about the need for tax policies that promoted businesses of women entrepreneurs, saying \u201c we need to increase the knowledge of our women on tax administration.\u201d<\/p>\n

Women entrepreneurs, she noted, played a critical role in the local economy, feed children and even husbands and families.<\/p>\n

Mr. Alexander Oppong, an officer from the Ghana Revenue Authority, educated the women on the need for voluntary compliance and the issuance of the Commissioner\u2019s Invoice which is the value added tax.<\/p>\n

He said, tolls, taxes and other national levies were very critical in advancing the development agenda of the country…\u201dNo tolls, no society\u201d.<\/p>\n

The GRA officer told the women about the need to also keep proper records, which could guarantee reliefs and in some cases, exemptions.<\/p>\n

Mr Oppong said, \u201cI will also entreat you to register your businesses however small to also benefits from some government initiatives\u201d.<\/p>\n

He mentioned that an emerging zone in tax collection was the rent tax and advised both tenants and landlords to collaborate to avoid any conflict with the law.<\/p>\n

The women, during the open forum session called for a coordinated tax regime as against the multiplicity of taxes and institutions.<\/p>\n

Ms. Arabia Mansah, a Hair dresser, said, \u201ccan we do something about this tax system…you will be here and STMA, GRA will come, property rate, rent tax, business operating permit, income tax and so on for a small business like mine, can\u2019t the government just allow one institution or agency to collect.\u201d<\/p>\n

Others called for the removal of taxes on sanitary pads and businesses led by women over sixty years.<\/p>\n

Ms. Mary Abraham, a dealer in household detergent, said the government was killing the spirit of SMEs through over taxation.<\/p>\n

Mr. Archibald Adams, the Communication officer for Oxfam, described the interaction with the women as very insightful and a project that would increase awareness among SMEs to follow up in the name of accountability.<\/p>\n

He said Oxfam was committed to helping the citizenry to do well through proper governance structures and advocacy which promoted the rule of law and accountability.<\/p>\n

Mr. Adams implored the women led organisations to continue to engage in issues of economic concern for the mutual benefit of the state and their well-being.<\/p>\n

For More News And Analysis About Ghana<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Ghana. The managers of Ghana\u2019s economy have been entreated to use strong, robust and creative means to encourage the 90 percent of the population in the informal sector to pay their taxes. \u201cAbout 10 percent of Ghana\u2019s tax contribution to Gross Domestic Product (GDP) which came from the formal sector was inadequate to […]<\/p>\n","protected":false},"author":84,"featured_media":58703,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,12],"tags":[5092,5096,429],"class_list":["post-58704","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-policy","tag-africa-press","tag-africa-press-ghana","tag-ghana"],"yoast_head":"\nGovernment urged to create strong measures that motivate\u00a0informal sector to pay tax - Ghana<\/title>\n<meta name=\"description\" content=\"The managers of Ghana\u2019s economy have been entreated to use strong, robust and creative means to encourage the 90 perc ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/ghana\/all-news\/government-urged-to-create-strong-measures-that-motivate-informal-sector-to-pay-tax\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Government urged to create strong measures that motivate\u00a0informal sector to pay tax\" \/>\n<meta property=\"og:description\" content=\"The managers of Ghana\u2019s economy have been entreated to use strong, robust and creative means to encourage the 90 perc ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/ghana\/all-news\/government-urged-to-create-strong-measures-that-motivate-informal-sector-to-pay-tax\" \/>\n<meta property=\"og:site_name\" content=\"Ghana\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-04T16:34:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2023\/11\/sm_1699099601.033036.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/government-urged-to-create-strong-measures-that-motivate-informal-sector-to-pay-tax#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/government-urged-to-create-strong-measures-that-motivate-informal-sector-to-pay-tax\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Government urged to create strong measures that motivate\u00a0informal sector to pay tax\",\"datePublished\":\"2023-11-04T16:34:36+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/government-urged-to-create-strong-measures-that-motivate-informal-sector-to-pay-tax\"},\"wordCount\":928,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/government-urged-to-create-strong-measures-that-motivate-informal-sector-to-pay-tax#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2023\/11\/sm_1699099601.033036.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Ghana\",\"ghana\"],\"articleSection\":[\"all news\",\"policy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/ghana\/all-news\/government-urged-to-create-strong-measures-that-motivate-informal-sector-to-pay-tax#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/government-urged-to-create-strong-measures-that-motivate-informal-sector-to-pay-tax\",\"url\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/government-urged-to-create-strong-measures-that-motivate-informal-sector-to-pay-tax\",\"name\":\"Government urged to create strong measures that motivate\u00a0informal sector to pay tax - 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