SWIT, partners intensify tax education to boost informal sector compliance

The Office Manager of the Achimota Taxpayer Service Centre of the Ghana Revenue Authority (GRA), Mr. Joseph Kyei Ankrah, has emphasized the complexity of taxation, noting that even highly educated individuals often struggle to fully understand the subject.

Speaking at a tax education and sensitisation programme at the Dome Market in Accra organised by the Society of Women in Taxation (SWIT) in collaboration with GRA and International Budget Partnership, Mr. Ankrah stressed the urgent need to extend tax education, particularly to the informal sector, to foster voluntary compliance and support national development projects.

“Tax is a complicated subject. Many people have attained a high level of education yet they find it difficult to understand taxation,” Mr. Ankrah stated. “Because it is a complicated subject, we need to treat people with a human face.”

He further explained that education is essential for encouraging compliance.

“That is why we’ve decided to come to the market, to the doorstep of the taxpayers, to educate them to have a better and deeper understanding of the tax system. When somebody has better and deeper understanding of a particular thing, it becomes easy for that person to comply,” he stressed.

Mr. Ankrah noted that a lack of understanding often leads to resistance. According to him “if there is confusion in their minds and they don’t know how their taxes are being used, it will be difficult and impossible for them to pay willingly.”

“So we have come here to educate them and ensure voluntary compliance,” he added.

Addressing challenges with the VAT system, Mr. Ankrah mentioned that the Finance Minister has established a committee to address these issues, possibly reflecting improvements in the next budget.

He further revealed that the GRA intends to expand the educational campaign nationwide, particularly targeting the informal sector, which constitutes over 80 percent of the country’s total tax population. He also assured that beyond education and sensitisation efforts, the GRA would work to simplify tax laws and procedures to enhance compliance.

Representing the Society of Women in Taxation (SWIT), the women’s wing of the Chartered Institute of Taxation Ghana, Madam Esi Sam, Chairperson of the association, highlighted the importance of targeting women, who form a significant portion of the informal sector.

“Majority of women are found in the informal sector, and being women ourselves, we believe that this education can go down well for them to comply by paying their taxes,” Madam Sam said.

She reaffirmed the view that knowledge empowers action, noting that, “when people have the knowledge of something, applying that knowledge doesn’t become a problem anymore.”

Madam Sam also indicated that the team would not limit its outreach to those gathered at the main pavilion but would move through the market to engage vendors who could not attend the session.

The tax sensitisation programme was held alongside a health screening exercise, led by Dr. Desmond Nii Acquaye Allotey of the Paediatric and Intensive Care Unit at Korle Bu Teaching Hospital.

Dr. Allotey explained his involvement: “Health has always been paramount to me, and health screenings are one of those events where diseases can be picked up early so that interventions can be made to prevent complications, which are more expensive to treat and may burden the country’s healthcare system.”

He revealed that many market women were unaware of their health status, with several found to have undiagnosed high blood pressure. He urged them to prioritise regular medical check-ups to avoid severe complications. Dr. Allotey also noted that fatigue among market women often led some to unhealthy coping mechanisms, such as the use of alcohol to aid sleep.

During the event, the Dome Market Queen, Madam Evelyn Abena Sebie, expressed appreciation for the education, noting that it had given them a clearer understanding of taxation.

“This time around, we are going to pay our taxes because we now have a better understanding of the concept of taxation,” she affirmed.

Following the main engagement, the team, including representatives from the GRA and SWIT, visited individual shops to reach vendors who had been unable to attend the central event.

It was observed during these visits that some businesses were not yet connected to the GRA’s payment portal, hindering their ability to file tax returns properly.