Francis Timore Boi urges GRA to review 3% flat rate
Francis Timore Boi, a tax analyst, is urging the Ghana Revenue Authority (GRA) to review the 3% flat rate applied to businesses earning GH¢20,000 or more annually, arguing that the current threshold is too low and could unfairly burden very small businesses.
His comments come amid the implementation of the Modified Taxation Scheme, which takes effect on July 1, 2025, targeting informal sector workers across the country.
While commending the GRA’s efforts to widen the tax net, he believes the GH¢20,000 threshold should be raised to ease the tax burden on micro-enterprises.
He noted that taxing businesses at that level yields only GH¢600 annually, which he sees as insignificant, suggesting that a higher threshold would be more reasonable and impactful.
Despite his reservations about the current arrangement, he acknowledged the benefits of the broader policy.
He believes expanding the tax net could eventually lead to lower tax rates across the board.
“When more people contribute to taxes, the government won’t need to rely so heavily on raising rates or introducing new consumption taxes,” he is qouted to have said by Citi Business News.
Francis also raised concerns about the timing of the rollout, stating that starting in the middle of the year gives businesses limited time to understand and adjust to the changes.
“With only six months left in the year, and with minimal public awareness, many small businesses might resist, especially those now being taxed for the first time,” he said.
He recommended that future tax schemes be introduced at the beginning of the year and accompanied by strong public education campaigns to ease implementation.
DR/MA
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