The Ghana Revenue Authority (GRA) has launched a Modified Taxation Scheme (MTS) to formalize tax collection from the informal sector. This initiative aims to increase Ghana's tax-to-GDP ratio and integrate small businesses into the financial system. A recent workshop brought together 300 stakeholders to discuss the scheme's implementation and digital collection methods.
The GRA, in partnership with Eban Capital and the Association of Small-Scale Industries (ASSI), held a national workshop on September 9, 2026. This event focused on driving informal-sector tax compliance and digital revenue mobilization. It also emphasized financial inclusion through strategic partnerships. The workshop was a key part of a two-day national engagement.
Ghana's tax-to-GDP ratio currently stands at 13.5 to 14 percent, which is considered low for national development. The government seeks to expand the tax net to capture more economic activity. This new scheme targets micro and small businesses not registered for VAT. It links tax registration and payments to digital platforms. This approach creates verifiable tax records for businesses. These records can then open doors to formal credit, insurance, and pension services. This move is crucial for Ghana's economic growth and stability.
Elsie Appau-Klu, Technical Advisor to the Commissioner-General of the GRA, highlighted the President's priority to widen the tax net. She noted the informal sector's significant role in Ghana's economy. She stressed the need for the GRA to understand these businesses' needs. Developing pragmatic solutions together with them is essential for success. The GRA presented the MTS, including tax bands and a 3% flat rate for businesses. This rate applies to informal businesses with annual turnover between GHS 20,000 and GHS 750,000.
Jim Sewornu Amegah, CEO of Eban Capital, showcased the digital infrastructure for seamless tax collection. This system also facilitates related financial services for the informal sector. He emphasized bringing trade associations together. This collaboration allows members to access financial inclusion support from partner banks and Mobile Network Operators (MNOs). This integration brings them into both the tax net and the mainstream financial ecosystem. Rev. Christian Balagi, National President of ASSI, affirmed small-scale businesses' readiness to support the initiative. He stressed that success requires collaborative effort and intensified education for members. He welcomed the simplified system, noting most ASSI members fall within the GHS 750,000 threshold. This simplified approach helps them contribute without shock.
The workshop brought together approximately 300 participants from various sectors. These included ASSI Regional Chairmen from all 16 regions of Ghana. Representatives from the Ghana Private Road Transport Union (GPRTU) and other trade associations also attended. Senior officials from GRA, MASLOC, the Youth Employment Agency (YEA), and the Ghana Enterprises Agency (GEA) were present. Partner banks like Ecobank, Zenith Bank, CalBank, and GCB also participated. Mobile Network Operators such as Telecel and AirtelTigo, along with pensions and insurance companies, contributed. This broad participation underscores the scheme's national importance and multi-stakeholder approach.
Participants left the workshop with a clear understanding of the MTS framework. They also clarified institutional roles and established a pathway for association-led mobilization. Digital onboarding processes were also discussed. The event reinforced the commitment of GRA, Eban Capital, ASSI, and ecosystem partners. They aim for a coordinated national rollout. This expansion of the tax net will deepen financial inclusion for Ghana’s informal sector and Micro, Small, and Medium Enterprises (MSMEs). The successful implementation of MTS could significantly boost government revenue. It will also foster a more inclusive financial environment for millions of Ghanaians. This initiative represents a critical step towards formalizing a large segment of the economy. It promises long-term benefits for national development and economic stability.