The government has officially introduced the much-anticipated Modified Taxation Scheme, aimed at bringing more individuals and businesses into the tax system and promoting a fairer and more efficient approach to revenue mobilization.
The rollout follows months of engagement and earlier indications from tax authorities and stakeholders, who emphasized that the initiative is designed to broaden the national tax net and improve compliance across various sectors of the economy.
Targeting Night-Market Businesses
On Wednesday, November 5, 2025, during the launch in Accra, Chief of Staff Mr. Julius Debrah announced that the government would begin taxing night-market businesses as part of the new plan.
He stated this action is key to the government’s “24-hour economy” goal. The idea is to capture businesses that primarily operate at night and often avoid official tax monitoring.
Mr Debrah explained that the Ghana Revenue Authority (GRA) will work to include these night-time enterprises in the formal tax system. He was quoted saying:
“One area I urge the authority to also pursue vigorously, and which is in line with the 24-hour economy initiative, is to focus on players in the night-market economy. Some businesses operate only at night, and it is very easy for them to escape our lenses. If we are working around the clock, we should be able to bring all these businesses into the tax net,” he said.
Expanding the Tax Base and Promoting Trust
The Chief of Staff stressed that the new scheme is designed to broaden the tax base so all taxable income is properly counted. He added that the government aims to create a fair and open system where no one carries an unfair portion of the tax burden, emphasizing that fairness and willing compliance are at the heart of the national tax reform.
He said the government wants citizens to view paying taxes as an investment in national development, not just a chore.
Mr Debrah urged the GRA to use better technology to simplify the process of filing and paying taxes, making it easier for small businesses and traders, especially those in the informal and night-market sectors.
“The Ministry of Finance is committed to supporting the authority to use improved technology, simplify tax filing and payment, and promote transparency and accountability to improve voluntary tax compliance,” he said.
Education and Performance
The launch also included the Sustained National Tax Education Programme. Under this programme, the GRA will step up public education to help citizens understand their rights and responsibilities regarding taxes.
Mr Debrah praised the GRA for doing well in their collection efforts, noting they had exceeded their revenue target by GH¢347 million as of September 2025, having collected GH¢130.6 billion against a goal of GH¢130.2 billion. He expressed confidence that the Authority will surpass the year-end target of GH¢189 billion.
He emphasized that Ghana’s financial stability relies on generating enough internal revenue. The government’s “Reset Agenda”, he said, is focused on collecting sufficient domestic revenue to fund development projects while remaining fair and accountable.
He called on everyone to voluntarily declare and pay accurate taxes, promising that the government would continue to ensure taxes are used openly to build public trust.
“Taxpayers must see that officials are stewards and not predators feeding on their gains,” he said. “Trust is built by consistency and clear communication about how tax revenues are used, roads built, hospitals equipped, and classrooms furnished.”
He encouraged Ghanaians to support the new effort to create a “happy taxpayer regime” where people are proud to help develop the country.
“Let us imagine our country where a teacher in a remote village has a decent classroom, a nurse has the equipment she needs, and citizens commute on roads your taxes help pay for,” he said. “Together we can make this not just a policy initiative but a cultural transformation.”
GRA’s Commitment to Expansion
Anthony Kwasi Sarpong, the Commissioner-General of the GRA, called the new measures one of the Authority’s most important strategies for increasing revenue recently. He stated the reforms aim to make tax compliance simpler, especially for those in the informal sector, and ensure the country’s long-term financial stability.
“The Modified Tax Scheme has huge potential. Our analysis shows that if we are able to bring at least two million new taxpayers into the net each year, we can significantly increase domestic revenue and support national development,” Mr. Sarpong said.
He highlighted that the informal sector, estimated to include about eight million working individuals and businesses, offers the greatest chance to expand the number of taxpayers.
The first phase of the rollout aims to enrol two million new taxpayers annually over the next three years. The GRA believes that combining simpler tax processes, better education, and digital tools will encourage people to comply willingly and reduce lost revenue.
Mr. Sarpong noted that the expected increase in revenue is vital for funding government priorities and reducing Ghana’s need to borrow from outside sources.
The GRA urged the public, businesses, and civil society groups to support the efforts to modernise the tax system and build a more sustainable framework for domestic revenue.
