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Home Ghana News Let’s accentuate tax training to make stronger market mobilisation – Makers and Partners – Life Pulse Daily

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Let’s accentuate tax training to make stronger market mobilisation – Makers and Partners – Life Pulse Daily

Editor-in-chiefJanuary 31, 20263 Mins read47

Let’s Accentuate Tax Training to Make Stronger Market Mobilisation

Introduction

In an era where sustainable economic growth hinges on effective revenue mobilisation, tax compliance has emerged as a cornerstone for national development. Recently, COP Maame Yaa Tiwaa Addo-Danquah, Associate Partner–Advisory at Makers and Partners (MAP), has called for intensified public training on taxation as a vital step toward enhancing tax compliance and boosting domestic revenue mobilisation. This article explores the implications of this call, the current state of tax compliance in Ghana, and the strategic initiatives aimed at empowering small and medium-sized enterprises (SMEs) to navigate evolving fiscal reforms.

Key Points

**Urgent Need for Tax Education**: Public understanding of taxation is crucial for widening the tax net and encouraging voluntary compliance.
**Significant Tax Gaps**: Current compliance rates for field tax and VAT in Ghana are alarmingly low, indicating substantial revenue losses.
**Focus on SME Resilience**: SMEs are pivotal to Ghana's economy, and equipping them with tax knowledge is essential for their sustainability.
**GRA's Proactive Reforms**: The Ghana Revenue Authority is implementing a three-year tax education programme and introducing e-invoicing to improve compliance.
**Collaborative Efforts**: Partnerships between advisory firms like MAP and the GRA are creating platforms for SMEs to understand and adapt to tax reforms.

Background

Taxation is the lifeblood of any nation’s economy, providing the necessary funds for public services, infrastructure, and development projects. In Ghana, however, the tax system faces significant challenges, with compliance rates falling short of expectations. According to data from the Ghana Revenue Authority (GRA), field tax compliance stands at just 33 per cent, leaving a 67 per cent gap. Similarly, Value Added Tax (VAT) compliance is at 39 per cent, with a 61 per cent gap. These figures highlight a critical need for intervention to bridge the compliance divide and strengthen domestic revenue mobilisation.

SMEs, which form the backbone of Ghana’s economy, are particularly affected by these challenges. Many struggle with understanding tax reforms, maintaining proper records, and meeting statutory deadlines. This not only hampers their growth but also limits their contribution to the national economy. Recognising this, stakeholders are now focusing on education and advisory services to empower SMEs and foster a culture of compliance.

Analysis

The call for intensified tax training is both timely and strategic. By simplifying and demystifying the tax system, the government and its partners aim to widen the tax net and encourage voluntary compliance. This approach is rooted in the understanding that a well-informed taxpayer is more likely to comply willingly, reducing the need for enforcement measures.

The GRA’s three-year tax education programme is a step in the right direction. By targeting both registered and unregistered businesses, the initiative seeks to address the root causes of non-compliance. The introduction of e-invoicing is another innovative measure, as it streamlines the tax filing process and reduces opportunities for evasion. Additionally, the upcoming National Compliance and Enforcement Team will ensure that all eligible businesses register and pay their fair share of taxes.

For SMEs, the benefits of these reforms are manifold. Access to professional advisory services, such as those offered by MAP, can help businesses navigate complex tax regulations and adopt proactive strategies for sustainability. Moreover, platforms like the Executive Business Dialogue provide SMEs with the knowledge and tools they need to understand and adapt to ongoing reforms. This collaborative approach not only strengthens individual businesses but also contributes to the overall resilience of the economy.

Practical Advice

For SMEs looking to improve their tax compliance and sustainability, here are some actionable steps:

1. **Invest in Tax Education**: Take advantage of training programmes and workshops offered by the GRA and advisory firms like MAP.
2. **Leverage Professional Advisory Services**: Seek guidance from experts to navigate complex tax regulations and optimise your tax strategy.
3. **Adopt Digital Tools**: Embrace e-invoicing and other digital solutions to streamline your tax filing process and reduce errors.
4. **Stay Informed**: Keep abreast of ongoing tax reforms and compliance requirements to avoid penalties and maximise benefits.
5. **Engage with Peers**: Participate in forums and dialogues to share experiences and learn from other businesses facing similar challenges.

FAQ

**Q: Why is tax training important for SMEs?**
A: Tax training equips SMEs with the knowledge to understand and comply with tax regulations, reducing the risk of penalties and fostering sustainable growth.

**Q: What is the GRA doing to improve tax compliance?**
A: The GRA is implementing a three-year tax education programme, introducing e-invoicing, and launching a National Compliance and Enforcement Team to ensure all eligible businesses register and pay taxes.

**Q: How can SMEs benefit from professional advisory services?**
A: Professional advisory services provide SMEs with expert guidance on tax regulations, helping them optimise their tax strategy and navigate complex compliance requirements.

**Q: What role do platforms like the Executive Business Dialogue play?**
A: These platforms bring SMEs together to share knowledge, understand tax reforms, and equip them with the tools needed to adapt to evolving compliance requirements.

Conclusion

The call to accentuate tax training is a crucial step toward strengthening domestic revenue mobilisation and fostering economic resilience. By empowering SMEs with the knowledge and tools they need to navigate tax reforms, Ghana can bridge the compliance gap and unlock the full potential of its economy. Collaborative efforts between the GRA, advisory firms like MAP, and business leaders are paving the way for a more efficient and equitable tax system. As these initiatives take root, the hope is that voluntary compliance will become the norm, driving sustainable growth and development for all.