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 personal incomes exceeding GHS10,000 to the government.
Related: 35% tax on personal incomes ‘too high’ – TUC
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 into the tax base.
Latest Stories
-
We want to make agriculture sexier and more engaging for the youth – Joyce Bawah Mogtari
23 minutes -
Kusasi youth and Police reconcile after clashes, launch peace sensitisation campaign
2 hours -
GPL 2024/2025: Gold Stars beat Medeama to stay top
2 hours -
Pope Francis’s rise from Buenos Aires to Catholic Church leader
2 hours -
GPL 2024/25: Attuquaye winner seals derby glory for Berekum Chelsea
2 hours -
Global tributes pour in for Pope Francis
2 hours -
UDS at 33: Celebrating Transformative Impact and Excellence in Northern Ghana
2 hours -
Nkenkaasu ‘A’ crowned champions of Dada Joe Cup
3 hours -
Hegseth shared Yemen attack details in second Signal chat, reports say
3 hours -
Kwahu Easter: Four arrested for various offences – Eastern North Police
3 hours -
Make timely payment if a contractor delivers quality work on time – Roads Minister urged
3 hours -
Prison staff to demand electric stun guns in jails
3 hours -
Vance in Delhi to meet Modi amid tariff tensions
3 hours -
Pope Francis has died, says Vatican
3 hours -
Kwesi Dain releases new single, Atanfo
3 hours