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Message: [QUOTE="Munyaradzi Mafaro, post: 46726, member: 636"] Ghana Revenue Authority will start a new tax system for informal workers on July 1. The program targets people who work outside the formal tax system. Workers earning less than 20,000 cedis per year must pay between 25 and 45 cedis every three months. Those earning between 20,000 and 500,000 cedis will pay 3 percent of their total income. Officials believe this change will bring more people into the tax system. Dr. Alex Kombat from the revenue authority announced the plan during a research report presentation. The system aims to make tax payments easier for small business operators. Kombat said the government wants to collect more domestic revenue through these changes. He asked media groups and citizens to support the new program. The authority developed this approach to replace traditional tax collection methods. BudgIT Ghana worked with other organizations to produce research about informal sector tax behavior. The study found that informal workers prefer paying local assembly fees over national taxes. Jennifer Moffatt from BudgIT Ghana recommended that revenue authorities work with local governments. She noted that workers feel more comfortable dealing with local officials. The research covered informal sector workers across Greater Accra Region. Esi Sam from the Society for Women in Taxation praised the modified tax system. She said simpler systems help people comply with tax requirements more easily. Sam believes the new approach will reduce confusion among small operators. The informal economy employs more than 70 percent of Ghana's workforce. Officials hope the new system will formalize much of this untaxed economic activity. [/QUOTE]

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