The government has announced plans to introduce an automatic adjustment formula for the rates of the Special Petroleum Tax, Energy Sector Levies, and Excise Duty.
This is in a bid to streamline and enhance the efficiency of its tax system.
These significant changes are outlined in the Medium Term Revenue Strategy for the years 2024-2027.
The proposed automatic adjustment formula aims to create a more dynamic and responsive tax structure, ensuring that these key indirect taxes keep pace with economic changes and fluctuations.
This would help maintain government revenue while reducing the need for frequent manual adjustments.
Additionally, the government intends to address several other important indirect tax issues as part of its strategy:
- Alignment of Exemption Provisions: The government plans to align exemption provisions in the Value Added Tax (VAT) Act and the Customs Act. This alignment seeks to simplify and harmonise tax regulations, reducing confusion and improving compliance.
- Hybrid Tax System for Excisable Products: Consideration is being given to implementing a hybrid system of taxes for excisable products. This system would incorporate both ad valorem (percentage-based) and specific (fixed amount) rates, allowing for a more balanced approach to taxing such goods.
- Review of VAT Exemptions: The government is committed to reviewing VAT exemptions to make them more efficient and less distortionary. This review is aimed at ensuring that exemptions serve their intended purpose without creating unintended consequences in the market.
- VAT and Levies to Support Industry: To bolster the industrial sector, there are plans to review VAT and impose levies in a manner that is more supportive of industry growth and development. This strategic approach aims to stimulate economic activity and create a conducive environment for businesses.
- Shift Towards Consumption-Based Taxes: In a fundamental shift, the government aims to reduce its reliance on wage-based taxes and instead focus on consumption-based taxes. This shift aligns with global trends and is expected to promote savings while ensuring that the tax burden is distributed more equitably.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Tags:
Latest Stories
-
Western Region: NDC youth wing embarks on phase 2 of ‘retail campaign’
6 mins -
Action Chapel International holds annual Impact Convention in November
7 mins -
Jana Foundation urges young women to take up leadership roles
11 mins -
All set for Joy FM Prayer Summit for Peace 2024
22 mins -
Managing Prediabetes with the Help of a Dietitian
42 mins -
Joy FM listeners criticise Achiase Commanding Officer’s election comment
1 hour -
Legal Aid Commission employees threaten strike over poor working conditions
1 hour -
Ghana ranked 7th globally as biggest beneficiary of World Bank funding
1 hour -
IMF board to disburse $360m to Ghana in December after third review
1 hour -
Former Bono Regional NPP organiser donates 13 motorbikes to 12 constituencies
1 hour -
Securities industry: Assets under management estimated at GH¢81.7bn in quarter 3, 2024
1 hour -
Gold Fields Ghana Foundation challenges graduates to maximise benefits of community apprenticeship programme
3 hours -
GBC accuses Deputy Information Minister Sylvester Tetteh of demolishing its bungalow illegally
3 hours -
Boost for education as government commissions 80 projects
3 hours -
NAPO commissions library to honour Atta-Mills’ memory
4 hours