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The caretaker of Finance Minister, delivered the budget themed; Consolidation, Completion and Continuation on behalf of the President of the Republic.
The 2021 budget statement and economic policy of government among others focused on measures the government is going to implement to mitigate the effect of COVID-19 global pandemic on the Ghanaian economy.
Altogether, government is aiming at total revenue and grants for 2021 of GH¢72,452 million, equivalent to 16.7 percent of Gross Domestic Product (GDP), up from an outturn of GH¢55,132 million, equivalent to 14.3 percent of GDP recorded in 2020.
Government announced some tax reliefs for Ghanaians in the 2021 budget statement.
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In all the Caretaker Finance Minister announced the suspension of four taxes. They are;
- The suspension of quarterly vehicle income tax during the third and fourth quarters of the year for operators of commercial public transport popularly called trotros and taxis. According to government, this move is aimed at reducing the cost of transportation under its tax relief program.
- Tax rebate of 30 per cent on the income tax due for companies in hotels and restaurants, education, arts and entertainment, and travel and tours for the second, third and fourth quarters of 2021.
- For operators of small businesses using the income tax stamp system, government is suspending their quarterly income tax instalment payments for the second, third and fourth quarters of 2021.
- There is also an extension of waivers of interest on accumulated tax arrears as an inventive to pay them off early although to be eligible, the first quarter tax obligations must have been fulfilled.
The government also introduced some new taxes. The 6 new taxes include;
- Tax on betting/gaming. On Gaming Policy, government said gaming had become a major income earner all across the globe and a significant source of government revenue.
- Government will be introducing a Covid-19 Health Levy of 1% on VAT, Flat Rate Scheme (VFRS) and a 1% on National Health Insurance Levy (NHIL) as part of revenue measures to help the economy recover.
- Energy Sector Recovery Levy of 20 pesewas per litre on fuel.
- Review of road tolls
- Sanitation and Pollution levy
- Financial sector cleanup levy