The Ghana Revenue Authority (GRA) has announced that key policies in the country’s tax administration laws will be implemented starting from July 1, 2025. These policies are aimed at boosting the domestic revenue drive for the government and ensuring a fair and efficient tax system.
One of the major changes is the implementation of the Modified Taxation Scheme (MTS), which is designed to simplify the tax system for the informal sector. The MTS introduces a flexible framework targeting micro, small, and medium businesses across the country, in line with the Income Tax Act, 2015 (Act 896). Acting Commissioner-General of the GRA, Anthony Kwasi Sarpong, emphasized that the scheme is not an additional tax but a simplified method of calculating personal income tax for eligible traders and entrepreneurs.
The MTS includes different tax categories such as Presumptive Tax Based on Installments (PTI), Presumptive Tax Based on Turnover (PTT), and Modified Cash Basis (MCB), each catering to businesses of varying sizes and annual turnovers. The scheme also offers multiple payment options, including mobile money, USSD codes, and bank deposits, making it easier for taxpayers to fulfill their obligations.
In addition to the MTS, the GRA is implementing various strategic initiatives to plug revenue leakages and broaden the tax base. The Special Voluntary Disclosure Programme (SVDP), introduced in 2024, is being expanded to allow residents who earn incomes abroad to voluntarily disclose their earnings without incurring penalties.
Another key policy set to be implemented is the VAT on Real Estate, which will require estate developers to charge a 5% VAT on the supply of immovable property. A 1.0% COVID-19 levy will also be applicable on such transactions, with penalties for withholding agents who fail to comply with the regulations.
Furthermore, the VAT on Non-Life Insurance will require insurance companies to charge a 15% VAT on premiums for various types of insurance policies. Companies are expected to update their accounting systems, train staff on VAT application, communicate with clients about the changes, and ensure timely registration for VAT if not already done.
Overall, these policy changes represent a balanced approach to revenue generation, aimed at strengthening domestic revenue mobilization and reducing reliance on debt financing. By implementing these measures, the GRA aims to enhance tax compliance, close revenue loopholes, and support the country’s economic recovery efforts. The government is currently implementing various strategies to ensure compliance with regulations, especially in critical sectors. These measures aim to guarantee that all sectors contribute their fair share to the overall progress and development of the country.
One of the key initiatives being undertaken by the authorities is the creation of multiple pathways for compliance. This approach allows different industries and businesses to adhere to regulations in a way that is feasible and practical for their specific circumstances. By offering various options for compliance, the government is making it easier for organizations to meet their obligations without facing unnecessary challenges or obstacles.
At the same time, the government is also focusing on ensuring that critical sectors play a significant role in contributing to the country’s growth and development. These sectors, which are essential for the economy and society as a whole, are expected to fulfill their responsibilities and obligations in a manner that aligns with the overall goals and objectives of the government. By holding these sectors accountable and ensuring their active participation, the authorities are working towards creating a more sustainable and equitable society.
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In conclusion, the government’s efforts to promote compliance and accountability in critical sectors are crucial for the country’s progress and development. By creating multiple pathways for compliance and encouraging active participation from key industries, the authorities are laying the foundation for a more sustainable and prosperous future. It is essential for all stakeholders to work together towards common goals and objectives to ensure the continued success and growth of the nation.
