By Leo Nelson
The Ghana Revenue Authority (GRA) says its initiative to simplify tax compliance for small businesses is beginning to improve participation among informal sector operators, as the authority intensifies implementation of its Modified Taxation Scheme.
Speaking at a tax clinic held on the sidelines of the Kwahu Business Forum, Technical Advisor to the Commissioner-General of the GRA, Elsie Appau-Klu, said the initiative is designed to make tax registration and payment “very efficient, very simple” for micro, small, and medium-sized enterprises (MSMEs), many of which have historically remained outside the formal tax net.
According to her, the scheme, backed by “sustained tax education”, seeks to lower entry barriers for smaller enterprises that often struggle with record-keeping, bookkeeping, and other compliance requirements needed to operate formally and scale.
She said the authority has introduced digital options that allow business owners to register and pay taxes remotely, including through the shortcode *880#, mobile applications, and other electronic platforms, as part of a broader effort to reduce the administrative burden associated with tax compliance.
Appau-Klu said the reform is particularly important in a business environment where a large share of operators remain informal and often lack the capacity to maintain proper accounts or hire professional tax and accounting support.
For that reason, she said the GRA is effectively “holding your hand” by simplifying the system and guiding smaller firms through the compliance process rather than relying solely on enforcement.
A major policy shift under the reform, she noted, is the upward revision of the VAT registration threshold from GH¢200,000 to GH¢750,000 in annual turnover. In practical terms, she said, businesses below that threshold are exempt from paying VAT, although they can still register under the modified tax framework and become formally recognized taxpayers.
That, she explained, is intended to make the system more accessible to smaller firms and encourage more operators to enter voluntarily rather than remain outside the tax system.
Compliant businesses under the scheme can also qualify for tax clearance certificates, strengthening their ability to compete for contracts and participate in formal business transactions.
She stressed that taxes remain essential to financing public services and infrastructure, arguing that low participation from the broader business community undermines national development efforts.
Appau-Klu also linked improved compliance to future business growth, saying formalisation could help local firms meet standards required to access new markets, including export opportunities.
She said the authority would continue outreach and taxpayer education to ensure more businesses understand the system and can comply with minimal friction.