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Message: [QUOTE="Munyaradzi Mafaro, post: 48363, member: 636"] Tax experts slam Ghana Revenue Authority over new business tax rules that hit small traders hard. The Modified Taxation Scheme kicked off July first and targets workers from informal sectors across the country. Critics say the 20,000 cedi yearly income limit punches micro-businesses right where it hurts most. Francis Timore Boi leads the charge against what he calls unfair treatment of tiny enterprises. The current setup forces companies earning between 20,000 and 500,000 cedis to pay three percent of total annual sales. Boi admits the policy helps expand the tax base but wants higher income limits for small operators. He argues that very small businesses might dodge tax payments if the government keeps pressuring them with low thresholds. The analyst points out that 600 cedis per year from a 20,000 cedi business barely makes sense for collection efforts. Broader tax participation could eventually lower rates for everyone once more people join the system. Government officials keep raising consumption taxes because not enough citizens pay their fair share. The timing creates headaches for business owners who need time to adjust their operations. Many small enterprises face their first tax bills ever under the new system without proper preparation time. Boi suggests starting such major changes at the beginning of calendar years rather than mid-year launches. Public education campaigns remain crucial for helping traders understand their new obligations. Better planning and more teaching could make this scheme work for both government revenue and business growth. [/QUOTE]

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