Gov’t to increase taxes in mid-year budget

The government of Ghana has hinted that it will increase taxes in its mid-year budget review.

A Special Aide to President Akufo-Addo and leading member of the New Patriotic Party (NPP) Gabby Asare Otchere-Darko gave this hint with a Facebook post.

He asked if Ghanaians will be willing to pay more taxes for better development in the country.

In a Facebook post on Thursday, the former Director of Think Tank Danquah Institute wrote “will you support a VAT increase to keep your lights on, your secondary schools filled, your school kids fed, your streets clean, your streets safe, young graduates employed, and decent, affordable homes built for working families?.”

Meanwhile, sources indicate that the government intends to introduce taxes such as;

1. An increase in Communications Service Tax from 6% to 12%?

2. A mandated minimum corporate tax

3. An expanded stabilisation tax?

4. Collaterising royalties from minerals to enable the government to raise loans

5. Increased social security (SSNIT) contributions to the NHIS?

6. A Financial Service Tax

In the mid-year budget, the government is likely to increase the Value Added Tax (VAT) from 17.5% to 21%. The mid-year budget will be presented to Parliament on Thursday, July 19, 2018.

The country’s Financial Management Administration Act requires the finance minister to come before Parliament not later than July 31, prepare and submit to parliament a Mid-Year Fiscal Policy review.