Parliament is expected to consider the passing of three new revenue measures into law today March 23, 2023.
According to the Ministry of Finance, the new proposed taxes will increase the country’s domestic revenue by almost GH¢5 billion and also boost the country’s Ghana’s fiscal position.
The revenue measures include the Income Tax Amendment Bill, Growth and Sustainability Bill, and the Excise Amendment Bill.
According to the government, minimum wage earners would be exempted from taxes under the Income Tax Amendment Bill, which is anticipated to bring in GH¢1.2 billion.
Income Tax Amendment Bill
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 realization of assets and liabilities and on winnings from the lottery, unify the loss carried forward provisions and revise the treatment of foreign exchange losses.
The bill when passed will increase the optional rate for individuals on the gain from the realization of an investment asset, revise the upper limits for the quantification of motor vehicle benefits and increase the concessional income tax rates.
Growth and Sustainability Bill
The object of the Bill is to impose a special levy on profit before tax of companies and institutions and on production in the case of mining, and upstream oil and gas companies.
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.
This is to increase the excise duty on wine, malt drinks and spirits; and impose excise duty on sweetened beverages and electronic cigarettes, and electronic liquids to increase revenue.
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