Government To Increase Taxes In Mid-Year Budget

13-07-2018

Government To Increase Taxes In Mid-Year Budget

The government of Ghana has hinted at increasing taxes in its mid-year budget review.

Ahead of the mid-year budget presentation to Parliament, Special aide to President Nana Akufo-Addo and leading member of New Patriotic Party Gabby Asare Otchere-Darko hinted that government will increase tax to raise more revenue.

In a Facebook post on Thursday, the former Director of Think Tank Danquah Institute wrote “will you support a VAT increase to keep your lights on, your secondary schools filled, your school kids fed, your streets clean, your streets safe, young graduates employed, and decent, affordable homes built for working families?.”

His post comes after Starrfmonline.com gathered the government is considering introducing taxes such as;

1. An increase in Communications Service Tax from 6% to 12%

2. A mandated minimum corporate tax

3. An expanded stabilisation tax?

4. Collateralising royalties from minerals to enable government raise loans

5. Increased social security (SSNIT) contributions to the NHIS?

6. A Financial Service Tax

The government is also likely to increase the Value Added Tax (VAT) from 17.5% to 21% in the mid-year budget set to be presented to Parliament on Thursday, July 19, 2018.

The country’s Financial Management Administration Act requires the finance minister to come before Parliament not later than July 31, prepare and submit to parliament a Mid-Year Fiscal Policy review.

This often allows the finance minister the opportunity to review the targets, especially when it comes to the review,
a. A brief overview of recent Macroeconomic Developments of Governments

b. Update of Macroeconomic forecast undertaken by the government

c. Analysis of total revenue and expenditure and performance for the first 6 months of this year

d. Also where necessary, revise the Medium Term Budget outlook the budget outlook and Expenditure framework.

 

Source: https://www.ghanaweb.com/GhanaHomePage/business/Government-to-increase-taxes-in-mid-year-budget-668313

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