He said that since they do not have reliable data to capture individuals and businesses in the informal sector, “Our closest that we take for [the] informal [sector] is [the] self-employed and that is where our performance will goof. Prof. [Eugenia Amporfu] talked about 2 percent but what we have is just 1 percent, it is even worse”.
ADVERTISEMENT
The head of Ghana’s revenue authority says tax contribution from the informal sector contributes just 1% to tax revenue
The Commissioner-General of the Ghana Revenue Authority (GRA), Emmanuel Kofi Nti, has disclosed that the Ghanaian informal sector contributes just one percent to the total tax revenue.
Commissioner-General of GRA, Emmanuel Kofi Nti
Recommended articles
He said this at a forum organized by the Danquah Institute Economic Forum on the theme: ‘Bridging the gap between the formal and informal economy, the role of domestic revenue mobilisation in an era of Ghana Beyond Aid’.
He explained that the total tax revenue for the informal sector is mainly captured under the self-employed category, which makes “just about a percentage” of total tax revenue.
However, according to the Ghana Statistical Service’s, the informal sector is made up of businesses – across all sectors – which are not registered with the Registrar-General’s Department (RGD) and do not keep formal accounts.
ADVERTISEMENT
Meanwhile, the informal sector is estimated to be more than 60 percent of the country’s economy. This means that a greater amount of Ghana’s revenue could have been harnessed from that sector if collected.
In a related development, the GRA is targeting 4 million Tax Identity Number (TIN) registrations by the end of 2019.
Mr Nti was hopeful they would meet the target also because the TIN registration by 2018 has doubled as against the 1 million recorded in 2017.
“As of December 2017, people on the TIN were 1,170,384. However, by the end of December 2018, we had moved to just 364 away from 2 million. So, when you look at it critically, we have doubled the number of people on the TIN.”
He added that the vision of the GRA in 2019 “is to also, again, double that TIN. So, our target for that area is 4 million”.
ADVERTISEMENT
This, he said, will help the GRA generate more domestic revenue for the country.
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.com.gh
Recommended articles
How 1 woman became first lady of 2 different countries — she married 2 presidents
How parents, teachers can recognise when a child is being bullied
Ladies! Here are 5 things you shouldn't say to your man during sex
It's illegal to publicly celebrate your birthday in this country
Don't pay new transport fares - GPRTU and GRTCC urge Ghanaians
Reflo’s makes a splash at Madina market with product showcase and community engagement
Akufo-Addo will sign the anti-gay bill if it reaches his desk – Miracles Aboagye
400 acres of cocoa farms at risk due to MIGOP Mining Limited's exploration activities