According to him, only four percent contributed to domestic tax revenue in the country.

Mr Nyame disclosed this in Tamale, during Private Enterprise Federation stakeholder’s consultation workshop on tax reforms for MSMEs.

The event was to discuss the current MSMEs taxation systems being implemented in the country and their impact on MSMEs’ tax compliance.

It was also to identify the difficulties encountered by MSMEs in their bid to fully comply with their tax obligations under the current tax system and gave some statistics during his presentation saying the large Taxpayers income to Ghana Revenue Authority (GRA) was between GH¢90,000.00 to GH¢5 million per year.

He noted that the result of low payment of tax by MSMEs was due to poor record keeping of the basis for provisional assessments by GRA and said some of the MSMEs may not be able to calculate the chargeable income, capital allowance, and annual returns and afford the services of a professional which need to be addressed by GRA.

He noted that there should be proper tax education on registration requirements and punitive actions by the GRA to the MSMEs for them to know your obligation in the tax sector.

Mr Nana Osei- Bonsu, the Chief Executive Officer of PEF advised the MSMEs to register for the Value Added Tax (VAT) and they should also exhibit the VAT certificate of registration at the principal place of business and at every other location at which the person engaged in business.

He also stated that lack of knowledge of deductibility of input VAT may result in MSMEs filing and paying incorrect VAT to the GRA which Authority needed to deal with.