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GRA introduces new tax regime: Businesses with turnover below GHS 20,000 to pay GHS 25 to GHS 45 …

by Newsroom
27 June 2025
in Business
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GRA set to implement 3 new taxes on May 1
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The Ghana Revenue Authority (GRA) will from July 1, 2025, implement a modified tax system targeted at improving compliance and widening the tax net, especially within the informal sector.

The new regime will see informal workers who are not yet registered with the GRA but earn less than GHS 20,000 annually pay a flat quarterly tax ranging between GHS 25 and GHS 45.

The announcement was made by the GRA’s Assistant Commissioner for Research and Policy, Dr. Alex Kombat, during the launch of a report on informal sector tax compliance in Accra.

“We have developed a system called modified taxation,” Dr. Kombat stated.

“Those with turnover below GHS 20,000 will pay a fixed amount—GHS 25, GHS 35, or GHS 45. For those with turnover between GHS 20,000 and GHS 500,000, we’ll apply a 3% tax on their turnover. This marks a shift from the traditional tax collection methods.”

He appealed to the public and especially the media to support the roll-out of this reform, which aims to make tax contributions more equitable and predictable.

The initiative has received endorsement from tax advocacy groups.

Jennifer Moffatt, Country Manager for BudgIT Ghana, called for collaboration between the GRA and local assemblies to boost tax confidence.

“Many informal sector workers feel more comfortable paying levies to local authorities than to the GRA,” she explained.

Esi Sam, Chairperson of the Society for Women in Taxation, welcomed the initiative, saying it would enhance understanding and encourage compliance.

“When you understand something, it becomes easy to do because it’s straightforward,” she said, noting that the simplified model will reduce anxiety around taxation for many workers.

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