Government expected to bag GHS100.5bn in 2022 – Finance Minister

Ken Ofori-Atta, the Minister of Finance has disclosed that Ghana is expected to take in GHS 100.5bn in revenue in 2022.

Ghana's Finance Minister, Ken Ofori-Atta.

“Mr Speaker, total revenue and grants for 2022 is projected to rise above GHS100 billion for the first time – GHS100.5 billion, equivalent to 20 per cent of GDP up from a projected outturn of GHS70.3 billion, equivalent to 16 per cent of GDP for 2021”, Mr Ofori-Atta told parliament on Wednesday, 17 November 2021 when he presented the 2022 budget.

He said: “Domestic revenue is estimated at GHS99.5 billion and representing an annual growth of 44 per cent over the projected outturn of 2021”.

“The increase in domestic revenue by 44 per cent”, he noted, “is as a result of the impact of a major progressive tax policy complemented by improvement in tax compliance and reforms in revenue administration that we have outlined in the budget”.

Mr Ofori-Atta also observed that despite the COVID-19 pandemic, not a single public sector worker was laid off.

Mr Ofori-Atta also indicated that the 3 per cent VAT (flat rate) on the supply of goods by wholesalers and retailers which was introduced in 2017, will now be limited to only retailers explaining that all other supply of goods and services will attract the standard rate.

The minister explained that the object of the flat rate is to provide a simplified system for small-scale enterprises noting that to ensure that this objective is achieved, the rate will be applied to retailers with annual turnover not exceeding GHS500,000.

JOIN OUR PULSE COMMUNITY!

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.com.gh