{"id":2566,"date":"2025-03-24T14:11:24","date_gmt":"2025-03-24T14:11:24","guid":{"rendered":"https:\/\/sanggraloka.com\/tax-compliance-boost-how-financial-support-can-elevate-small-businesses-says-accounting-expert-international-edition\/"},"modified":"2025-03-24T14:11:24","modified_gmt":"2025-03-24T14:11:24","slug":"tax-compliance-boost-how-financial-support-can-elevate-small-businesses-says-accounting-expert-international-edition","status":"publish","type":"post","link":"https:\/\/sanggraloka.com\/id\/tax-compliance-boost-how-financial-support-can-elevate-small-businesses-says-accounting-expert-international-edition\/","title":{"rendered":"Tax Compliance Boost: How Financial Support Can Elevate Small Businesses, Says Accounting Expert (International Edition)"},"content":{"rendered":"

\n
\n By Buertey Francis BORYOR
\n <\/strong>\n<\/p>\n

\n The Head of Accounting at the University of Ghana Business School (UGBS), Professor William Coffie, has advocated for a strategic method to incorporate the nation’s informal sector into the taxation framework.\n<\/p>\n

\n At the 2025 Post-Budget Forum webinar organized by LIMA Partners, he suggested connecting tax adherence with financial assistance programs to motivate small enterprises to sign up for taxation and meet their obligations.\n<\/p>\n

\n Coffie proposed utilizing programs such as the Women\u2019s Development Bank and MASLOC to motivate small enterprises to register, maintain records, and fulfill their tax obligations.\n<\/p>\n

\n We often discuss formalizing the informal sector so they can start paying taxes, yet we rarely mention specific actions being taken. Rather than merely encouraging adherence, we ought to offer incentives instead,” he explained further. “For instance, if tiny enterprises such as salons demonstrate consistent record-keeping and timely tax submissions over three years, they could become eligible for microloans and grants from organizations including MASLOC, GEA, and the Women\u2019s Development Bank.\n<\/p>\n

\n He says this method has been successful in locations such as the UK, where companies that follow the rules can obtain financial assistance.\n<\/p>\n

\n
\n Utilizing monetary rewards to enhance tax adherence
\n <\/strong>\n<\/p>\n

\n Coffie mentioned that numerous informal enterprises evade taxation as they perceive no immediate advantages. He suggested implementing a tax compliance index, which would enable the nation to incentivize firms adhering to reporting and payment criteria.\n<\/p>\n

\n “Government bodies and financial organizations could establish a framework wherein enterprises that consistently meet their tax obligations receive preferential access to funding. This would encourage voluntary adherence as opposed to depending solely on regulatory measures,” he clarified.\n<\/p>\n

\n Furthermore, he emphasized that incorporating the informal sector ought to be part of a long-term strategy. “Addressing this issue cannot happen within just one financial year. It requires a well-structured plan spanning the coming three to four years,” he noted.\n<\/p>\n

\n
\n VAT changes provide respite for companies.
\n <\/strong>\n<\/p>\n

\n Coffie welcomed the latest VAT reforms, calling them a relief for companies.\n<\/p>\n

\n “The core idea behind VAT is that the taxes paid on inputs and collected from outputs should offset each other. In theory, whatever amount one pays for inputs would equal the tax they gather from their outputs. However, due to additional charges, companies found themselves paying over 21% on inputs but only recovering 15% through outputs. This situation significantly increased operational costs. Therefore, these reforms come as a significant relief,” he stated.\n<\/p>\n

\n Although acknowledging that eliminating these charges will enhance the general business climate, he encouraged the government to take additional steps toward making VAT more equitable for companies.\n<\/p>\n

\n
\n Addressing tax evasion via bonded warehouses
\n <\/strong>\n<\/p>\n

\n Coffie likewise expressed worries regarding tax avoidance via the improper use of bonded warehouses.\n<\/p>\n

\n “We should carefully examine the usage of bonded warehouses. Certain companies exploit this system for tax evasion purposes. Enhancing oversight can assist in ensuring that enterprises fulfill their financial obligations,” he asserted.\n<\/p>\n

\n
\n Agriculture for economic transformation
\n <\/strong>\n<\/p>\n

\n The economist similarly endorsed the government\u2019s Agriculture for Economic Transformation program, aiming to increase food output and reduce inflation.\n<\/p>\n

\n “We all understand that food prices play a significant role in driving inflation. By supporting local production, particularly in sectors such as aquaculture, we can decrease our reliance on costly imported goods,” he pointed out.\n<\/p>\n

\n
\n Strengthening young people through skill-building
\n <\/strong>\n<\/p>\n

\n Coffie also praised the government for investing in vocational training and employment initiatives such as the National Apprenticeship Program, Adwumawra, and the National Coders Initiative.\n<\/p>\n

\n “Everyone won\u2019t necessarily move through the conventional educational framework. Such programs offer crucial abilities that render youth capable of securing employment and becoming financially independent. In due course, this could broaden the tax pool as additional individuals join the structured economic sector,” he stated.\n<\/p>\n

\n
\n The economic setting for the 2025 budget
\n <\/strong>\n<\/p>\n

\n The nation’s budget for 2025 arrives as it strives to bounce back from financial challenges. Starting in 2023, it has implemented an economic revival strategy backed by the International Monetary Fund (IMF). This initiative aims to fortify the economy post periods of soaring inflation, devalued currency, and escalating debts.\n<\/p>\n

\n In December 2024, when President John Mahama assumed office, he pledged to revitalize the economy. A key component of his strategy involves eliminating certain taxes to alleviate pressure on enterprises. This approach is evident in the 2025 budget proposal, which aims to strike a balance between reducing taxes and exploring alternative methods for generating governmental income.\n<\/p>\n

\n Nevertheless, certain specialists argue that the administration needs to discover methods for securing sustained income generation. Professor Coffie proposed that rather than increasing the burden on enterprises which are already contributing taxes, the government ought to concentrate on integrating more individuals into the taxation framework via inducements and fiscal assistance.\n<\/p>\n

Provided by Syndigate Media Inc. (
\nSyndigate.info
\n).<\/p>","protected":false},"excerpt":{"rendered":"

By Buertey Francis BORYOR The Head of Accounting at the University of Ghana Business School (UGBS), Professor William Coffie, has advocated for a strategic method to incorporate the nation’s informal sector into the taxation framework. At the 2025 Post-Budget Forum webinar organized by LIMA Partners, he suggested connecting tax adherence with financial assistance programs to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[283,284,391,333,786],"tags":[],"class_list":["post-2566","post","type-post","status-publish","format-standard","hentry","category-business","category-economics","category-government","category-personal-finance-taxes","category-taxes"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/sanggraloka.com\/id\/wp-json\/wp\/v2\/posts\/2566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sanggraloka.com\/id\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sanggraloka.com\/id\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sanggraloka.com\/id\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sanggraloka.com\/id\/wp-json\/wp\/v2\/comments?post=2566"}],"version-history":[{"count":0,"href":"https:\/\/sanggraloka.com\/id\/wp-json\/wp\/v2\/posts\/2566\/revisions"}],"wp:attachment":[{"href":"https:\/\/sanggraloka.com\/id\/wp-json\/wp\/v2\/media?parent=2566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sanggraloka.com\/id\/wp-json\/wp\/v2\/categories?post=2566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sanggraloka.com\/id\/wp-json\/wp\/v2\/tags?post=2566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}