Benjamin Yeboah, the National Welfare Officer for the Ghana Union of Traders (GUTA), has confirmed that the introduction of the new Modified Taxation Scheme (MTS) followed extensive stakeholder consultation and sensitization.
Mr. Yeboah highlighted that the new system was specifically designed to simplify tax registration and payment, making the process easier, faster, and more transparent for businesses operating in the informal sector.
Under the scheme, individuals and businesses with annual incomes not exceeding GH¢500,000 will be subject to a flat tax rate of 3 percent. For illustrative purposes, a business earning GH¢200,000 annually will pay GH¢6,000, while a business earning GH¢25,000 will contribute GH¢750 in taxes.
Speaking on Frontline on Rainbow Radio 87.5FM, Mr. Yeboah explained that the modified tax system was introduced to streamline tax computation. He noted that the business community had previously complained about cumbersome tax rates and unacceptable disparities, making the new system laudable for its potential to simplify the tax structure.
He further asserted that this new tax system is expected to expand the tax net, bringing more Small and Medium Enterprises (SMEs) into the formal tax system, and foster voluntary compliance. He added that the scheme is anticipated to build trust and reduce bureaucracy.
Regarding the upcoming 2026 budget statement, which the government is set to submit on November 13, 2025, Mr. Yeboah stated that GUTA expects to see lower lending rates. He stressed that this is crucial for making borrowing more affordable for local businesses.
Another key promise GUTA wants the government to address is the scrapping of the Covid-19 levy.
Mr. Yeboah confirmed that GUTA had previously engaged with the government and resisted the introduction of any new taxes, arguing that the business community is already overburdened. Instead, they have urged the government to improve efficiency in revenue collection and broaden the existing tax net.
Finally, he admonished the government to capitalize on the recent appreciation of the cedi by implementing measures that would ease the cost of doing business. He informed host Kwabena Agyapong that GUTA members have already reduced their prices to reflect the gains the cedi has achieved over the past few months.
By: Rainbowradioonline.com/Ghana
