Government to freeze tax waivers for foreign companies in 2023 - Ofori-Atta

According to him, the move is a first step toward expenditure rationalisation in the country.

Presenting the 2023 budget statement in Parliament on Thursday, November 24, 2022, he said "there will be a freeze on new tax waivers for foreign companies and review of tax exemptions for free zone, mining, oil and gas companies."

The move he said will be effective from January 2023.

Amongst other things, the Finance Minister assured Parliament and Ghanaians in general that every dime that is collected in the form of taxes will be spent well by the government.

“There will be fiscal discipline, every pesewa will be spent well," Ken Ofori-Atta said.

He further proposed in the 2023 budget presentation an increment in the Value Added Tax (VAT) by 2.5 per cent.

The standard VAT rate is 12.5%, except for supplies of a wholesaler or retailer of goods, which are taxed at a total flat rate of 3%.

The proposal to increase the rate forms part of the seven-point agenda to revitalize the economy, the Finance Minister told Parliament.

He also announced that the government will undertake major structural reforms in the public sector.

Regarding the economic challenges, he told Parliament that the government was determined to change the narrative after admitting that the country has been going through troubles.

“The government is determined to change the negative narrative and rebuild for a better future,” he said.

Both the Majority and Minority MPs gathered at Parliament for the budget reading.