Recent Update

Expanding the tax net: GRA charts new path with Modified Taxation Scheme

The partners held a national stakeholder workshop in Accra, bringing together approximately 300 participants from across the country. The engagement formed part of a two-day national programme aimed at building awareness of the scheme and securing the cooperation of business associations, financial institutions and other stakeholders.The workshop was held under the theme, "Driving Informal-Sector Tax Compliance, Digital Revenue Mobilisation and Financial Inclusion through Partnership."Participants included ASSI regional chairmen from all 16 regions, representatives of the Ghana Private Road Transport Union and other trade associations, senior officials from the GRA, the Microfinance and Small Loans Centre, the Youth Employment Agency and the Ghana Enterprises Agency.Representatives of commercial and development-oriented financial institutions, including Ecobank, Zenith Bank, CalBank, ARB Apex Bank, OmniBisc Bank, Fidelity Bank, Access Bank and GCB, also attended. Mobile network operators, mobile-money service providers, pensions managers and insurance companies, including Telecel, AirtelTigo, Mobile Money Fintech Ltd, Old Mutual and Star Assurance, were among the other stakeholders present.The Modified Taxation Scheme is intended to encourage voluntary tax compliance among informal-sector operators and micro and small businesses that are not registered for value-added tax. Under the scheme, tax registration and payment are linked to digital platforms, creating verifiable records for participating businesses.According to the organisers, those records could help informal businesses gain access to formal credit, insurance, pension products and other financial services. The approach is also expected to support Ghana's efforts to expand its tax base and improve the country's tax-to-gross domestic product ratio.Speaking at the workshop, Elsie Appau-Klu, Technical Advisor to the Commissioner-General of the GRA and Chairperson of the MTS Implementation Committee, said widening the tax net remained a key national development priority.She acknowledged the important contribution of informal businesses to Ghana's economy and said the revenue authority must work with operators to understand their needs and develop practical solutions that would make compliance easier.Ms. Appau-Klu noted that Ghana's tax-to-GDP ratio currently stood at approximately 13.5 to 14 per cent, suggesting that there was significant room to increase domestic revenue mobilisation.The GRA team used the workshop to explain the structure of the Modified Taxation Scheme, including the applicable tax bands. Officials highlighted a three per cent flat tax rate for informal businesses with annual turnover ranging from GHS 20,000 to GHS 750,000.The scheme's simplified structure is intended to make tax payments more predictable and manageable for small businesses, many of which may not have the accounting systems or administrative capacity required under conventional tax arrangements.Jim Sewornu Amegah, Chief Executive Officer of Eban Capital and Lead of the MTS Project Management Office, presented the digital infrastructure that will support the collection of taxes and provide access to related financial services.He said the involvement of trade associations would be critical to the success of the initiative because associations could help mobilise their members, support education efforts and facilitate digital onboarding.Mr. Amegah also stressed the importance of connecting informal businesses to banks, mobile network operators and other financial-service providers. Such connections, he said, could help businesses move gradually into the formal financial system while contributing to national revenue.The National President of ASSI, Rev. Christian Balagi, expressed the readiness of small-scale businesses to support the government's initiative. He cautioned, however, that successful implementation would require sustained collaboration among government agencies, private-sector partners and business associations.He also called for intensified education to ensure that members understood the obligations and benefits associated with the Modified Taxation Scheme.Rev. Balagi welcomed the scheme's threshold of GHS 750,000, saying most ASSI members fell within that category. He said the simplified system could enable small-scale operators to contribute to national development without feeling overwhelmed by the tax process.The workshop concluded with participants agreeing on the need for coordinated implementation, clearer institutional responsibilities and association-led mobilisation. Stakeholders also identified digital onboarding as an important step in enrolling informal businesses and connecting them to tax and financial-service platforms.

Recent Update

Association of Small-scale Industries, GEA strengthen artisans through mentorship, coaching

The Association of Small-Scale Industries (ASSI), in collaboration with the Ghana Enterprises Agency (GEA), has organised an executive mentorship and coaching training programme for trade association executives in the Eastern Region.The programme, held in Koforidua, brought together executives of various trade associations from the 33 municipal and districts in the region. The participating district and municipal executives included chairpersons, vice chairpersons, secretaries, and organisers. Addressing participants, Mr Abdallah Samari, General Secretary of ASS said the programme formed part of the Business in a Box (BizBox) Project being implemented by the GEA with sponsorship from the Mastercard Foundation to strengthen the capacity of industry players and support the development of sustainable businesses. He said the BizBox Project focused on equipping young people with vocational and business management skills, providing them with tools and starter kits for their trades, connecting new micro businesses to buyers, and supporting business registration and certification. Mr Christian Balagi, National President of ASSI, said the mentorship and coaching programme was designed to promote personal growth, strengthen leadership capacity and improve workplace performance. He explained that while mentoring provided long-term career guidance and support, coaching focused on short-term skill development, adding that the two approaches could help address skills gaps, improve job satisfaction, and enable businesses to retain skilled personnel. He described mastercraft persons in the Eastern Region as a pivotal link in the industrial sector because of their role in training apprentices who would eventually become mastercraft persons themselves. “We are here to take them through mentoring and coaching. We have observed that in our various workshops, we only end at the stage of coaching and do not continue mentoring the apprentices after they have left us. We want to change that trend,” he said. Mr Balagi encouraged mastercraft persons to embrace innovation and continuously upgrade their skills to remain relevant in the changing business environment. “If you are not innovative, you are out of business. To all artisans across board, the encouragement is that we should not stop learning. Keep learning and be abreast with the times so that we will not be out of business,” he said. Mr Alfred Yaw Kissi, the Eastern Regional Chairman of ASSI, said although formal mentorship was a relatively new approach within the association, it was a key component of the programme because it provided experienced industry players with the opportunity to transfer valuable knowledge, skills and experience to others. He said the initiative would strengthen professional relationships, promote knowledge sharing, and help build stronger and more supportive business communities in the region. Mr Lord-Lucas Vodzi, a Chartered Environmentalist and facilitator for the programme, said effective mentorship practices required open communication and a safe learning environment. He urged mentors to outline clear goals and responsibilities, establish expectations, and build trust and rapport with mentees. Mr Vodzi said many artisans in Ghana were not sufficiently exposed to modern business practices and needed to adjust to the increasingly dynamic and global nature of commerce. “Today’s business world is dynamic and global; you can work from anywhere,” he said. He encouraged artisans to move beyond operating solely from their physical shops and build professional networks across regions to expand their markets and increase their earnings. Ms Adelaide Asantewa, New Juaben South Municipal Secretary of the Ghana Hairdressers and Beauticians Association (GHABA), said women in the industry sometimes faced misunderstandings and conflicts when working together. She said the training had equipped participants with the emotional maturity needed to manage such challenges and promote teamwork.“We must ensure we connect with one another and embrace teamwork to improve our businesses,” she said. Ms Asantewa also encouraged members to mentor colleagues who lacked particular skills to ensure that practitioners across the industry were able to provide quality services.

Recent Update

BIZBOX LEADERSHIP TRAINING IN KUMASI.