In a bold move to reshape the energy sector and alleviate debt burdens while ensuring a steady power supply for industries, the government has initiated a series of measures, including quarterly tariff increments.
To align with the IMF’s revenue mobilization objectives, Ghana unveiled a comprehensive Medium-Term Revenue Strategy in September 2023.
This strategic framework focuses on crucial tax policies and revenue administration measures essential for achieving both Ghana's domestic goals and the IMF's program revenue objectives.
Watch video: JoyNews' Isaac Kofi Agyei explains why Government of Ghana is introducing a 15% VAT of electricity
Ghana has already taken significant strides towards enhancing revenue generation, implementing measures such as quarterly adjustments to electricity tariffs, raising the VAT rate from 12.5% to 15%, restructuring the E-levy, and eliminating discounts on customs benchmark values.
Looking ahead to 2024, the government plans to introduce additional measures, encompassing 12 tax reforms and the implementation of new tax mechanisms.
One of the pivotal strategies involves the removal of selected VAT exemptions, amounting to approximately GHS4.4 billion this year.
Also read: VAT on power consumption: From free electricity to taxing times
Additionally, there will be revisions to income-based taxes and a scrutiny of the headline rate of the Communication Services Tax (CST).
The Government of Ghana also aims to expand taxes on gambling revenues, heighten Stamp Duty, introduce a 5% VAT rate on the rental of commercial premises, and unveil new taxes, such as the Emission Tax and the Plastic and Packaging Tax.
Adding more, the government is set to strengthen the implementation of the Vehicle Income Tax (VIT) sticker mechanism and embark on the reform of corporate income tax by gradually phasing out tax holidays and exemptions.
It is crucial to note that these measures are intrinsic to the government's independent revenue mobilization strategy and not dictated by the IMF.
As Ghana navigates these reforms, stakeholders and citizens alike will closely observe the impact on various sectors and the overall economic trajectory.
Latest Stories
-
Mahama is coming to correct your errors – Nii Lante Vanderpuye to Akufo-Addo
46 seconds -
Expect fierce rainstorms in the coming weeks – Ghana Meteo warns residents in Northern, Oti regions
8 mins -
Bahamas 2024: ‘There was no time to blame anyone’ – Azamati on reaction after baton drop
9 mins -
Don’t kill me – Mother of three escapes death after vicious attack by husband
19 mins -
JoySports’ Muftawu Nabila donates furniture to Duu Basic School in North East region
26 mins -
AI Economy in Africa: A step towards Africa’s industrialisation
31 mins -
Bahamas 2024: ‘I knew it was game over after receiving the baton from Azamati’ – Joe Paul
51 mins -
Today’s front pages: Wednesday, May 8, 2024
51 mins -
Ghanaians benefit from AI Africa stimulus project
1 hour -
Gideon Mensah and Elisha Owusu secure Ligue 1 promotion with Auxerre
1 hour -
Racing towards health: Why you should join 2024 KGL Foundation Millennium Marathon
1 hour -
Banking giant BNP Paribas exits South Africa
2 hours -
Attorney General unveils 8 legislations in corruption fight
2 hours -
Police clash with civilians at Dambai, teenager killed
2 hours -
Kwame Sowu: Combating Corruption and Fueling Growth Together in Ghana
2 hours