PwC Post-Budget Forum 2020

22-11-2019

PwC Post-Budget Forum 2020

Last Monday, PricewaterhouseCoopers (PwC) organised their annual Post-Budget Forum for 2020. The 2020 budget is themed ‘Consolidating the gains for growth, jobs, and prosperity for all’ and was presented by the Minister of Finance, Mr. Ken Ofori-Atta on 13 November last. The Post-Budget Forum hosted clients of PwC, members of the business community, captains of industry and policymakers amongst them. The forum was opened by Country Senior Partner of PwC Ghana, Mr. Vish Ashiagbor. He welcomed the focus on public investment in infrastructure. The declining public investments over the last few years had negative implications for growth, job creation, and public delivery.

The Minister of Finance, Mr. Ken Ofori-Atta, spoke also at the Post-Budget Forum and summed up the achievements, challenges and the government’s commitment to consolidate the achievements. He stated that the management of the economy resulted in stability, with all indicators pointing in the right direction.

Mr. Abeku Gyan-Quansah (in the picture), a partner at PwC, advised the government to set realistic targets in order to avoid missing revenue targets. The government expects to spend GHS 86 billion in 2020 but to raise GHS 67 billion in that same year. This means that before 2020 starts, the government already plans additional loans of GHS 18.9 billion to finance the 2020 expenditure. He also questioned whether the government could really increase the revenues out of taxes by 16 percent.

PwC called in its post-2020 Budget analysis for a restructuring of the tax system. The restructuring should embed the broadening of tax revenues by including the informal sector. Also, a review is necessary for the current benchmark values system being operated at the port. In addition, the restructuring of the tax system will result in an increase in technology to make the tax system more efficient and taxpayer-friendly. They also recommend that the Exemptions bill (aimed at streamlining the exemptions regime in Ghana) be passed into law as soon as possible. PwC predicts that the extension of the Special Import Levy (SIL) to 2024 will be damaging for businesses. The measure will further increase the costs of imports and the general cost of doing business at Ghana’s ports.

Sources: B&FT (Tuesday 19 November), Daily Graphic (Tuesday 19 November) (Thursday 21 November).

 

More information:

https://www.google.com/url?q=https://www.pwc.com/gh/en/publications/tax-facts-and-figures.html&sa=D&ust=1574354038342000&usg=AFQjCNF0AbY8zNoAWcL-RKdLyli99FfbBQ

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