Development Economist and former Presidential Staffer, PV Jantuah Boateng Dadson, has called on the Ghana Revenue Authority (GRA) to adopt innovative tax strategies to enhance revenue mobilisation, particularly within the informal sector.
In a statement shared on his official Facebook page, Mr Dadson stressed the need for reforms to complement the existing Modified Tax System (MTS), which he said has proven insufficient in broadening the tax base.
“The Ghana Revenue Authority (GRA) must find more innovative and compelling tax systems to supplement the Modified Tax System in order to effectively broaden the tax net and increase tax revenue on a long-term basis,” he stated.
He raised concerns about weaknesses in the current system, arguing that it creates opportunities for inefficiencies and revenue losses.
“The modified tax system appears to expose GRA field staff to corruption, resulting in the state losing expected revenue,” he noted.
Mr Dadson proposed the introduction of what he describes as a “Motivated Tax Regime” (MTR), a system that integrates tax deductions into mobile money transactions for services rendered by informal sector workers.
“I propose that GRA implement a Motivated Tax Regime in which payments for services rendered by informal sector actors will be made via mobile money,” he explained.
Detailing how the system would function, he said users would indicate the nature of transactions during payment.
“Under the MTR, the payee will press ‘2’ to alert the system that the payment is for services rendered, and the system will deduct the specified tax amount,” he said.
According to him, the model also introduces incentives to promote compliance among service providers.
“A percentage of the deducted tax will be paid to the payee to encourage him or her to continue doing so,” Mr Dadson added.
He further described the proposal as inclusive, noting its potential to capture a wide range of informal sector workers.
“The MTR creates a win-win situation and can easily involve everyone. It can attract masons, carpenters, painters, plumbers, electricians, auto/engineering mechanics, tailors, morticians, and other skilled workers,” he stressed.
Mr Dadson expressed confidence that the proposal could significantly transform Ghana’s revenue mobilisation if properly implemented.
“I believe that, with the right stakeholder engagement and public education, the MTR will be a game changer,” he stated.
Source:www.Kumasimail.com
