The Ghana Revenue Authority (GRA), under the auspices of the Ministry of Finance, has taken a transformative step toward reshaping the financial and tax landscape for micro, small, and medium enterprises (MSMEs) in Ghana.

The official launch of the Modified Tax System (MTS) and Sustainable Tax Education Program at the Mövenpick Ambassador Hotel in Accra signals a new era in Ghana’s quest to promote voluntary tax compliance, boost domestic revenue mobilisation, and deepen financial inclusion within the informal sector.

The initiative, supported by the African Development Bank (AfDB), seeks to create a seamless link between taxation and access to finance — a connection that has long eluded the majority of informal sector players such as traders, artisans, and small business owners.

At the heart of this groundbreaking initiative lies a strategic partnership between the GRA, the Microfinance and Small Loans Centre (MASLOC), and Eban Capital Ltd, a leading Ghanaian digital financial technology and advisory company. Together, these institutions are working to integrate the Modified Tax System into MASLOC’s digital lending and savings platforms.

This integration will enable informal sector participants — particularly members of the Association of Small-Scale Industries (ASSI) and other trade associations — to register, file taxes, and access credit digitally through a secure and user-friendly platform. The approach marks a shift from traditional paper-based systems to a fully digital ecosystem designed to simplify tax obligations while offering tangible financial benefits to compliant taxpayers.

Building Creditworthiness Through Tax Records

One of the most powerful aspects of the Modified Tax System is its ability to help informal sector participants build verifiable tax and credit records. Historically, many small-scale traders and artisans have struggled to access loans from banks and microfinance institutions due to the absence of formal financial documentation. The MTS seeks to eliminate that barrier by linking tax compliance directly to credit eligibility.

Through this digital integration, taxpayers’ information will serve as a verified record of business activity and financial discipline. These data points can then be used by MASLOC and partner financial institutions to assess creditworthiness more accurately, enabling small businesses to access affordable loans and financial products.

According to project stakeholders, this model has the potential to revolutionize financial inclusion in Ghana by bringing millions of informal sector actors into the formal financial system for the first time.

The technology backbone of the MTS-MASLOC integration is being provided by Eban Capital Ltd, whose expertise in financial technology solutions is central to ensuring the system’s reliability and efficiency. Eban Capital’s digital platform will not only facilitate tax filing and payment but also streamline data sharing between GRA, MASLOC, and other financial partners.

This innovation is aligned with Ghana’s Digital Transformation Agenda, which prioritizes the use of technology to enhance governance, improve service delivery, and drive inclusive economic participation. By adopting digital tools, the GRA and its partners are ensuring that the benefits of the tax system extend beyond revenue collection — fostering transparency, trust, and accountability within the informal economy.

Pilot Phase and Nationwide Rollout

The pilot phase of the MTS-MASLOC integration is expected to begin in December 2025, with a nationwide rollout planned for 2026. The initial phase will focus on testing the system’s functionality, user experience, and efficiency among selected informal sector participants. Feedback from this phase will guide improvements before the full-scale deployment.

Officials from the Ministry of Finance, GRA, MASLOC, and Eban Capital have emphasized that the pilot will serve as a learning phase to refine digital onboarding processes, user training, and support mechanisms to ensure smooth adoption. The goal is to create a system that is both accessible and sustainable, empowering MSMEs to take advantage of formal financial services without fear of complex bureaucracy.

Speaking at the launch, representatives from the Ministry of Finance and the GRA underscored that this initiative is part of a broader strategy to strengthen Ghana’s domestic resource mobilization framework while promoting financial inclusion. The partnership with the AfDB underscores the government’s commitment to leveraging international collaboration for sustainable development.

The AfDB’s support aligns with its continental objective of enhancing revenue mobilization and improving access to finance for small enterprises across Africa. By linking tax compliance to access to finance, Ghana’s Modified Tax System could become a model for other African countries seeking to digitize tax administration and empower small-scale entrepreneurs.

Empowering MSMEs — The Backbone of the Economy

Micro, small, and medium enterprises contribute significantly to Ghana’s GDP and employ the majority of the workforce. Yet, many of these businesses operate outside the formal economy, limiting their access to financial resources and government support. The MTS directly addresses this challenge by providing a digital bridge between the informal and formal sectors.

By ensuring that tax compliance translates into financial empowerment, the government is creating incentives for more MSMEs to formalize their operations. This will not only increase the tax base but also strengthen the resilience of small businesses, enabling them to grow, create jobs, and contribute more meaningfully to national development.

The launch of the Modified Tax System represents a turning point in Ghana’s efforts to build an inclusive and digitally driven economy. It demonstrates that taxation, when properly structured, can be a tool for empowerment rather than a burden.

As Ghana prepares for the nationwide rollout, the success of this initiative will depend on sustained collaboration, effective public education, and the commitment of all stakeholders to ensure that the informal sector, the lifeblood of the economy, fully benefits from the opportunities that digital transformation presents.