The Honorable Minister of Information, Sam George, has raised concerns regarding Ghana’s taxation framework, highlighting that certain individuals within the informal sector earn more than their counterparts in the formal sector who are regularly taxed.
While addressing a labor law conference, Sam George used coconut sellers as an illustrative example, noting that many of them earn considerably more than bank tellers, yet often remain outside the tax system.
During the discussion, it was mentioned that some coconut vendors reportedly achieve daily profits ranging from Ghc300 to Ghc500, with top earners in this trade potentially generating up to Ghc12,000 per month.
In contrast, bank tellers typically receive monthly salaries ranging from approximately Ghc1,687 to Ghc5,555.
Drawing this comparison, the Member of Parliament questioned why employees in the formal sector continue to experience Pay-As-You-Earn (PAYE) deductions, whereas many individuals with higher earnings in the informal sector do not contribute through similar tax channels.
