Prez Akufo-Addo assents 3 new tax laws in bid to boost revenues, secure IMF bailout
In a significant move aimed at shoring up the government’s finances and securing a much-needed bailout from the International Monetary Fund (IMF), Ghana’s President Akufo-Addo has signed into law three new tax bills that were recently passed by Parliament. The Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, and the Income Tax Amendment Bill 2022 are expected to raise GH¢4 billion annually in revenue, providing a much-needed boost to the country’s finances.
The new tax measures have been the subject of intense debate and scrutiny in recent weeks, with some critics arguing that they will place an unfair burden on the country’s struggling middle class. However, the government has been quick to defend the measures, stating that they are essential to its efforts to address Ghana’s budget deficit and reduce the country’s reliance on borrowing.
According to the government, the new taxes will help to fund key development projects in areas such as healthcare, education, and infrastructure, which are critical to the country’s long-term growth and development. In particular, the Growth and Sustainability Levy Bill 2022 is expected to generate significant revenue, with a levy of 1.75% on the value of goods and services supplied in the country. This is expected to raise up to GH¢1.5 billion annually, providing a major boost to Ghana’s public finances.
The new tax measures come at a critical time for Ghana, which has been hit hard by the economic impact of the Covid-19 pandemic. The country’s budget deficit has widened significantly in recent months, with the government struggling to balance its books and meet its debt obligations. The IMF bailout is seen as critical to the country’s efforts to stabilise its economy and avoid a potentially catastrophic debt crisis.
The signing of the new tax bills into law is likely to be welcomed by investors and international creditors, who have been closely monitoring Ghana’s fiscal situation in recent months. The measures demonstrate the government’s commitment to fiscal discipline and its willingness to take bold action to address the country’s economic challenges.
However, the new tax measures are also likely to be unpopular with many Ghanaians, who are already struggling to make ends meet in a tough economic climate. The government will need to work hard to ensure that the new taxes are implemented in a fair and equitable manner, and that the benefits of increased revenue are felt by all segments of society.
The signing of the new tax bills into law represents a significant milestone for Ghana as it seeks to address its economic challenges and secure a much-needed bailout from the IMF. While the measures are likely to be controversial and unpopular in some quarters, they are an essential component of the government’s efforts to stabilise the country’s finances and lay the foundations for long-term growth and development. Investors and international creditors will be watching closely to see how the new tax measures are implemented, and whether they deliver the desired results for Ghana’s economy and people.
