• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

5% finsec levy to accrue to government Ghs 1.7 billion end-2024

4 years ago
in Banking & Finance, highlights, Home, home-news, latest News
1 min read
0 0
0
113
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Government, through the imposition of the 5 percent financial sector levy on gross profits of banks, is expected to immediately raise some Ghs 219 million and a total of Ghs 1.7 billion from 2022 to 2024.

Banks’ profit-before-tax increased to Ghs 1.1 billion over the first two months of 2021 compared to Ghs 1.0 billion the same period last year.

According to Price Waterhouse Coopers (PwC), the 5 percent financial sector levy (finsec levy) which is expected to operate like the National Fiscal Stabilisation Levy (NFSL), will increase the tax burden on banks in which case the average effective income tax rate of banks will be 35 percent on their profits.

The introduction of the new levy, analysts argue can have dire consequences on both banks and Ghanaians as it could increase the cost of credit from banks in the form of increased fees and charges since banks might want to partially or wholly pass the new tax charge to their clients.

Aside that, the new tax will definitely reduce the profit margin of banks in the country.

However, PwC in its 2021 Budget Highlights report, also argues that provided government properly engages with the industry on the new levy, there will be no increase in bank fees and charges.   

Aside from the finsec levy anticipated to earn government Ghs 1.7 billion end-2024, the COVID-19 Health Levy of 1 percentage point increase in the National Health Insurance Levy (NHIL) and 1 percentage point increase in the VAT Flat Rate is also anticipated to earn government tax revenues of Ghs 889 million in 2021 and Ghs 4.35 billion from 2022 to 2024.

RelatedPosts

African Debt and Climate Change: How the ICJ’s Vanuatu Ruling Could be Used for Broader Justice

European Leagues Defend Plans to Stage Matches Abroad Amid EU Criticism

Bank of Ghana Sets Gold Coin Price at GHS 39,273 Per Ounce

The finsec levy, according to Caretaker Finance Minister, Osei Kyei Mensa-Bonsu, is to help defray outstanding commitments – locked up funds – in the financial sector.

According to government, aside restoring confidence in the financial sector and protecting savings of Ghanaians running into millions of cedis, it has spent in excess of Ghs 21 billion in refunds of monies to customers of the collapsed banks, FMCs and other financial institutions.

Presenting the 2021 budget, Mr Kyei Mensa-Bonsu opined that government will no longer be in the position to defray the remaining costs in the sector as the government intends to employ strict expenditure measures this year.

Source: norvanreports
Tags: 5 percent financial sector levygross profits of banksNational Fiscal Stabilisation Levy (NFSL)Price Waterhouse Coopers (PwC)
No Result
View All Result

Highlights

Rewriting the Rulebook: Ghana’s Battle to Restore Currency Credibility

Bank of Ghana Raises GHS 836m in Short-Term Bill Auction at 24.8% Yield

Importers Urged to Use Credit Cards as BoG Tightens Foreign Currency Rules

FirstBank Prepares for 2025 Staff Engagement Empowering People, Shaping Culture, Achieving Targets

Gov’t to Overhaul Investment Law, Create 24-Hour Economy Authority in New Bills to Parliament

Ghana, Singapore Push Cross-Border Payments and SME Ties as Mahama Hails Stabilising Economy

Trending

Features

African Debt and Climate Change: How the ICJ’s Vanuatu Ruling Could be Used for Broader Justice

August 28, 2025

African Debt and Climate Change: How the ICJ’s Vanuatu Ruling Could be Used for Broader Justice African...

European Leagues Defend Plans to Stage Matches Abroad Amid EU Criticism

August 28, 2025

Bank of Ghana Sets Gold Coin Price at GHS 39,273 Per Ounce

August 28, 2025

Rewriting the Rulebook: Ghana’s Battle to Restore Currency Credibility

August 28, 2025

Bank of Ghana Raises GHS 836m in Short-Term Bill Auction at 24.8% Yield

August 28, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.