3 new tax bills to generate for Gov’t GHS 5bn annually
Government has proposed a series of revenue measures aimed at shoring up domestic revenue and supporting the country’s economic recovery. The measures, if passed into law, are expected to generate almost GHS 5 billion and improve the country’s fiscal position.
The three bills in question – the Income Tax Amendment Bill, Growth and Sustainable Bill, and the Excise Amendment Bill – are designed to broaden the tax base, ensure better compliance among taxpayers, and introduce new taxes on luxury vehicles, tobacco products, and alcoholic beverages. The Excise Amendment Bill also seeks to increase the excise tax on petroleum products, which could have an impact on inflation but could also help generate more revenue.
The Income Tax Amendment Bill proposes changes to the tax system that could increase tax revenue. This bill seeks to broaden the tax base by imposing taxes on activities and income that were previously not taxed. The bill also seeks to ensure better compliance among taxpayers by introducing a self-assessment system, which will require taxpayers to accurately report their income and deductions.
The proposed revenue measures are designed to address the shortfalls that were encountered during the pandemic and the conflict between Ukraine and Russia. The Ghanaian government has been keen to stress the importance of these revenue bills and how they will benefit the economy. If passed into law, these bills could significantly change Ghana’s tax system and revenue collection mechanisms.
The proposed revenue measures are a significant step towards shoring up domestic revenue and supporting Ghana’s economic recovery. The bills, if passed into law, could increase tax revenue, promote sustainable economic growth, and lead to more efficient revenue collection. While these measures could have an impact on inflation, they are necessary to address the shortfalls caused by the pandemic and the conflict between Ukraine and Russia.
