The government through the Ministry of Finance laid three revenue papers in Parliament for consideration to be passed into law.
Here are the proposed tax measures introduced by the government
Parliament is debating on the Income Tax (Amendment) Bill, Excise Duty and Excise Tax Stamp (Amendment) Bills as well as the Growth and Sustainability Levy Bill.
The bills, namely the Income Tax Amendment Bill, the Excise Duty Amendment Bill, and the Growth and Sustainability Amendment Bill are expected to generate about GH¢4 billion annually when passed.
The new proposed taxes, the government said will shore up revenue domestically and boost Ghana's fiscal position following the shocks of COVID-19 and the Russia-Ukraine war.
It will also facilitate the Board Approval for the $3 billion International Monetary Fund (IMF) Programme staff-level agreement.
The Income Tax Amendment Law if passed into law would change how foreign exchange losses are reported in financial statements.
However, Ghanaians have been reacting to the three new taxes introduced by the government.
Critics believe the bill will price lower-income people and small business owners out of the digital economy
Here are the 3 new taxes you need to know.
Growth and Sustainability Bill
The object of the Bill is to impose a special levy to be known as the Growth and Sustainability Levy to raise revenue for the growth and fiscal sustainability of the economy.
The Levy is to be imposed on profit before tax of companies and institutions and on production in the case of mining, and upstream oil and gas companies.
The estimated revenue for 2023 is approximately ¢2.26 billion. The Levy is subject to review by the Minister responsible for Finance in 2025.
Income Tax Amendment Bill
The object of the Income Tax (Amendment) Bill, 2022 is to amend the Income Tax Act, 2015 (Act 896) to revise the rates of income tax for individuals and introduce an additional income tax bracket, introduce a withholding tax rate on the realization of assets and liabilities and winnings from the lottery, unify the loss carried forward provisions and revise the treatment of foreign exchange losses.
It is also intended to increase the optional rate for individuals on the gain from the realization of an investment asset, revise the upper limits for the quantification of motor vehicle benefits and increase the concessional income tax rates.
Excise Amendment Bill
The object of the Excise Duty (Amendment) Bill, 2022 is to amend the Excise Duty Act, 2014 (Act 878) to revise the excise tax rates for cigarettes and other tobacco products to conform with the Economic Community of West African States (ECOWAS) Protocols and raise revenue to mitigate the harmful effects of these excisable products.
It is also intended to increase the excise duty in respect of wine, malt drinks, and spirits; and impose excise duty on sweetened beverages and electronic cigarettes, and electronic liquids to increase revenue.
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