Government’s quest to ensure that it secures a deal with the International Monetary Fund (IMF) by the second quarter of this year could be decided in parliament today, March 30, 2023.

The House is expected to consider the three key revenue bills namely, the Income Tax Amendment Bill, The Excise Duty Amendment Bill and the Growth and Sustainability Amendment Bill. 

According to government, the revenue bills are needed to help government complete processes for about $3 billion IMF deal as well as improve the revenue situation of the country.

The Finance Ministry, earlier warned that there could be serious challenges with the country, which may send shocks to the economy if the bills are not passed.

However, some businesses have warned that passing the revenue bills, particularly the Growth and Sustainability Amendment Bill could affect the private sector. 

Mining and manufacturers are a few sector players kicking against the passage of the bills.

In addition, the Minority in parliament has expressed some opposition to the bills warning, warning that could burdened Ghanaians since government has already increased VAT rate in the 2023 budget – which is a consumption tax.

Governor urges passage of bills

Meanwhile, the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison has appealed to parliament to prioritise the passage of the three revenue bills to help the country complete processes for securing an IMF deal.

When passed, the taxes are expected to rake in about ¢4 billion annually.

“The passage of the relevant revenue bills by Parliament will therefore conclude the required prior actions to advance Ghana’s programme to the IMF Executive Board,” Dr. Addison said during a press briefing to announce the decision of the Monetary Policy Committee on the policy rate.

He explained that this will be critical in resetting the economy on the path of recovery, including putting it firmly on a disinflation path and sustained growth.

“It is imperative that Parliament prioritizes the passage of the revenue bills currently before it. Under the Staff Level Agreement with the IMF, the Bank of Ghana and the Ministry of Finance have finalised a Memorandum of Understanding on zero financing to the budget, which will be signed shortly”, added.

He stressed that the fiscal outlook is contingent on financing of the budget and will require the conclusion of the domestic debt exchange programme as well as securing the requisite financing assurances from bilateral donors.

Dr. Addison is optimistic discussions with external creditors will be fruitful, making the revenue bills outstanding issues that must be quickly passed to attain economic sustainability.

“The domestic debt exchange, new revenue measures, and structural fiscal reforms will provide significant reduction of debt service and help create fiscal space”, assured.