Only 2% Informal Sector Pays Tax - GRA Launches Tax Campaign

This year's National Tax Campaign was launched in Accra on Tuesday with the aim of attracting those in the informal sector.

According to the Commissioner General of the Ghana Revenue Authority (GRA), Mr Emmanuel Kofi Nti, even though the sector is the largest in terms of operators of the economy, constituting about 70 per cent "its contribution to tax revenue is sadly negligible, about two per cent."

Against the background of this unacceptable situation, he stated that the GRA is sustaining the education and sensitization of the public on tax issues, especially among the informal sector, who were largely represented by various groups such as the representatives of the Ghana Association of Seamstresses, traders from the Makola Market and Ghana Tenants Association.

For the campaign, which took off immediately, GRA is collaborating with the Information Services Department, National Commission for Civic Education and media partners.

Activities planned for the campaign include radio and television discussions, community outreach and engagements, stakeholder engagements, dawn broadcasts, naming and shaming, prosecution of tax debtors, media advertisements and Docu drama among others.

"I believe we all recognize the fact that without the contributions of the citizenry in the form of tax payment, the good intentions of government will come to naught. It is therefore the mark of good citizenship to not only insist on our rights on what government should do for us, but also carry out our part of the bargain, by voluntarily undertaking the four important obligations of any citizen", Mr Nti explained.

These obligations, he said included, registering with the tax administration, paying taxes on due dates, filing returns on due dates and making full disclosure of our transactions.

Explaining the theme for the campaign "Our Taxes Our Future", the Commissioner General said it was a continuation of what happened last year. In view of this "we have appropriately decided to maintain the theme for 2017 campaign as this year's campaign."

In an address on his behalf, the Minister for Finance, Mr. Ken Ofori-Atta said that it was important for the public to respond positively towards the GRA's message, because the contribution from the formal sector alone could not help the government to develop the country as expected.

He called for attitudinal change in the way and manner in which the public respond to their civic duty.

"As citizens, let us change our attitude and behaviour towards tax compliance. In this way, we would be honouring our part of the social contract between government and its citizens", he said.

"The culture of impunity with which we neglect our civic duty of paying taxes must seize if we are to achieve our objective and also move Ghana Beyond Aid" he stated, adding that the government will support the GRA to hold tax evaders accountable.

Considering the numerous operators in the informal sector, the Minister said that it was not right to ride on the back of the few numbers from the formal sector to contribute to revenue in the country.

Giving some statistics to back his argument, he said currently "we have about six million people who are supposed to be on the tax net but we have only just 1.5million people paying taxes regularly. This gap must be bridged at all cost."

He charged the GRA to remove all barriers and improve on the ease of paying taxes by citizens.

Source ISD: (Solace Esi Amankwa)

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