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Benaiah Nii Addo, Executive Director of GTYA, who gave the commendation, said the initiative reflected a strategic effort to address Ghana’s long-standing revenue mobilisation gap in the informal sector.
The Green Tax Youth Africa (GTYA), a tax advocacy group, has commended Ghana’s government for introducing the modified tax system to improve taxation compliance and revenue collection in the informal sector.
Benaiah Nii Addo, Executive Director of GTYA, who gave the commendation, said the initiative reflected a strategic effort to address Ghana’s long-standing revenue mobilisation gap in the informal sector.
The Modified Tax System taxed workers in the informal sector with turnovers below Gh¢ 20,000, between Gh¢25 and Gh¢45, while those with turnovers from Gh¢20,000 to Gh¢500,000, are taxed three percent of their turnovers. This strategy is to ensure fairness in domestic revenue mobilisation for workers in the informal sector, while easing the burden on the formal sector.
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Addo described the initiative as timely and progressive, as over 80 per cent of Ghana’s revenue potential was tied to the informal sector. Addo called on Civil Society Organisations, academia, private sector leaders, and international development partners to support the government in building a more equitable and fiscal framework, grounded in justice, efficiency and sustainability.
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