The Legislature has approved three tax amendments announced by the Finance Minister, Ken Ofori-Atta, during the presentation of the Mid-Year Review of the 2018 budget.
Parliament on Saturday passed the bills on the new amendments to the Value Added Tax (VAT), which make the Ghana Education Trust Fund (GETFund) and the National Health Insurance Levy (NHIL)straight levies at 2.5% rate each.
This means the new VAT tax rate, which was previously inclusive of the two taxes, reduces from 17.5% to 12.5%.
The infographic below demonstrates the new VAT amendment.
Also passed by Parliament on Saturday is the Income Tax Amendment Bill which charges 35% of incomes exceeding GHS10,000 to the government.
Joy News’ Joseph Opoku Gakpo reports that Legislators are in a process to pass varying taxes on vehicles with engine capacity of 3 litres (3L) and above.
Vehicles with engine capacities of 3.0 – 3.5 litres will attract an annual tax of 1,000 Ghana cedis; those with engine capacities of 3.6 – 4.0 litres will pay 1,500 cedis annually; while 4.1 litres and above are to an annual tax of 2000 Ghana cedis.
The new tax policies are meant to shore up the government’s leaking revenue streams. Some critics have said the new taxes will punish the economy and have suggested sustainable initiatives like roping in the huge informal sector of the economy.
Source:Â myjoyonline.com