The Asantehene Otumfuo Osei Tutu II has called on the Ghana Revenue Authority (GRA) to deepen its efforts in public tax education, particularly for informal sector workers.
He said adequate tax education for workers will ensure that they are not taken advantage of and compliance is guaranteed.
The development follows a reaction by some traders at the Kumasi Central Market who threatened to embark on a public demonstration to express their dissatisfaction over what they described as ‘astronomical tax estimates submitted’ to them by public revenue officers in the area.
According to the new tax estimates, traders who were paying Ghc500 for their annual tax assessment would now have to pay as much as Ghc1,300 this year – 2017: a staggering 160% increase from 2016.
The Ashanti Regional Minister had to intervene in the matter to prevent the traders from embarking on their planned mass protest against the tax raise.
The traditional leader expressed the view that such discrepancies could be effectively addressed if the GRA gives more attention to public tax education.
He said the GRA agents should embark on public tax education to ensure that those in the informal sector are integrated into the system and pay their fair share.
This increase and a general noncompliance in the informal sector has contributed to the revenue agency’s inability to meet its mid-year budget target.
However, the GRA leadership have expressed optimism that they will achieve all targets by the end of the year.
Speaking during a courtesy visit to the Asantehene on their assumption of office, the board chairman of GRA, Harry Owusu explained the agency will enforce tax obligations.
He said they will  “use him (Otumfuo Osei Tutu II) as a proxy to touch base with tax payers...If you do not educate them they will not see the need to pay taxes but we go through all the motions to sensitize them about the need to pay taxes and on time tooâ€.
He added that, “[they GRA] have something [it calls] the underground economy - too many people operating businesses in the country who are not paying taxes.
“And when we want to enforce the rules they misinterpret it either out of ignorance or out of mischief and try to incite other people who might be prone to pay taxes not to payâ€.
The GRA boss disclosed that the agency will step-up its operations in enforcing tax obligations either through applications of sanctions, prosecutions or locking of shops as well as other measures that may be considered unpleasant by the business community.