The Ministry of Finance has justified its new proposed taxes, indicating, it will shore up revenue domestically and boost Ghana’s fiscal position following the shocks of Covid-19 and the Russian/Ukraine war.
The Ministry has laid three revenue papers - the Income Tax Amendment Bill, Growth and Sustainable Bill and the Excise Amendment Bill to parliament for consideration to be passed into law.
This was after it got the necessary approval from the Finance Committee of Parliament for it to be considered by the house.
The Finance Ministry is very optimistic that these revenue bills will bring in almost ¢5 billion to support the economy.
Interacting with the media, Director at the Revenue Policy Division, George Winful maintained that it has done the necessary engagements with all the interested parties, who have supported the revenue measures, to secure the approval.
He further that the revenue plan is to aid in bridging the revenue gap due to the inability of the government to collect taxes during the Covid-19 pandemic.
“It is to help to correct the imbalance we are currently experiencing. This is not new but the essence of it is to rake in revenue to address the shortfalls we encountered during the Covid-period and the war between Ukraine and Russia”.
He claimed that the minimum wage earners would still be exempted from taxes under the Income Tax Amendment Bill, which is anticipated to bring in ¢1.2 billion.
If passed into law, the Income Tax Amendment Law would change how foreign exchange losses are reported in financial statements.
Growth and Sustainability Bill
The object of the Bill is to impose a special levy to be known as the Growth and Sustainability Levy to raise revenue for growth and fiscal sustainability of the economy.
The Levy is to be imposed on profit before tax of companies and institutions and on production in the case of mining, upstream oil and gas companies.
The estimated revenue for 2023 is approximately ¢2.26 billion. The Levy is subject to review by the Minister responsible for Finance in 2025.
Income Tax Amendment Bill
The object of the Income Tax (Amendment) Bill, 2022 is to amend the Income Tax Act, 2015 (Act 896) to revise the rates of income tax for individuals and introduce an additional income tax bracket, introduce a withholding tax rate on the realisation of assets and liabilities and on winnings from lottery, unify the loss carried forward provisions and revise the treatment of foreign exchange losses.
It is also intended to increase the optional rate for individuals on the gain from the realisation of an investment asset, revise the upper limits for the quantification of motor vehicle benefits and increase the concessional income tax rates.
Excise Amendment Bill
The object of the Excise Duty (Amendment) Bill, 2022 is to amend the Excise Duty Act, 2014 (Act 878) to revise the excise tax rates for cigarettes and other tobacco products to conform with the Economic Community of West African States (ECOWAS) Protocols and raise revenue to mitigate the harmful effects of these excisable products.
It is also intended to increase the excise duty in respect of wine, malt drinks and spirits; and impose excise duty on sweetened beverages and electronic cigarettes and electronic liquids to increase revenue.
Latest Stories
-
Police ‘waiting for court date’ on Erastus’ case is a lie – Samson Anyenini
9 mins -
Sports facilities are better managed by institutions – UG Sports Director on maintenance of Legon stadium
39 mins -
Ghanaian businesses must align vision with strategy to mitigate ESG Risks – KPMG
49 mins -
MTN achieves 30% localisation of Scancom PLC
50 mins -
Attorney-General: Some lawyers sacrifice ethics for ‘cheap’ political gains
1 hour -
Bond market: Volume up by 12.45% to GH¢746m
1 hour -
Cedi records year-to-date loss of nearly 29%; one dollar going for GH¢17.10
1 hour -
‘Our priorities are wrong in Ghana’ – UG Sports Director on sports development
1 hour -
The Fourth Estate’s investigative report wins 2nd place at 2024 AIJC
2 hours -
GPL: Our fans spur us on – GoldStars head coach Frimpong Manso on unbeaten run
2 hours -
Plantain chips are breaking hearts in Africa
2 hours -
61 new architects acquire state license to practice in Ghana
3 hours -
Masloc CEO honoured as capacity building Shero of the Year
3 hours -
MPs’ Repeated Attempts to Sue the Speaker: Unintended Consequences for the 2024 Elections?
3 hours -
Today’s front pages: Tuesday, November 5, 2024
3 hours