Strengthening economy through informal sector tax collection
Ghana Revenue Authority (GRA)'s Modified Taxation Scheme (MTS) has been contributing significantly to revenue mobilisation since its unveiling in late November last year. The MTS is designed for informal-sector workers and small businesses in Ghana, and is part of GRA's contribution to Ghana's RESET Agenda. The GRA aims to meet its GH¢230.13 billion tax target for 2026.
The MTS replaces complex tax assessments with a "pay-as-you-go" digital approach. The first-quarter 2026 revenue is 20% higher than in the same period last year. Individuals and enterprises whose income does not exceed GH¢500,000 can pay a flat rate of 3%. For example, an individual who earns GH¢25,000 annually pays GH¢750 for the year. The GRA estimates the population in this segment at about 8 million.
The GRA aims to strengthen feedback mechanisms, collaborate with the private sector, and use data-driven insights to enhance revenue collection and compliance.
Quick Summary
The Ghana Revenue Authority (GRA) is collaborating with small businesses on a new tax scheme. This Modified Taxation Scheme (MTS) aims to simplify tax payments - but the potential impact on Ghana's economy remains to be seen.
Summary - read the full story for complete context.
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