- Seventy percent of Ghana’s work force belong to the informal sector.
- Out of this only 2 percent pay tax to the state.
- The Ghana Revenue Authority (GRA) described this trend as worrying.
A Chief Revenue Officer of the Ghana Revenue Authority (GRA), Richard Hakeem Quainoo has revealed that only 2 percent of Ghana’s 70 percent informal business sector pays tax to the state.
He explained further that out of the expected 6 million taxpayers, only 1.5 million paid their taxes with 200,000 being from the informal sector.
Mr Quainoo said this means that few people have to pay taxes for the development of the country for everybody.
He entreated informal sector workers to register for their Tax Identification Number (TIN) since they would not be able to transact business with most government institutions if they do not register.
He also said registering for TIN will allow them to pay for their taxes. He added that Ghanaians with informal business should take advantage of tax incentives offered by the government under the General Tax Relief Policy.
The Chief Revenue Officer stated the government had given temporary concessions to individuals who would venture into agriculture to encourage the youth into it and to provide job opportunities.
Individuals engaged in family tree crops get a 10-year tax holiday as do cattle rearers, while those in cash crops get 5 years.