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The government has introduced three financial bills to Parliament aimed at revitalizing domestic revenue mobilization. These bills: the Income Tax Amendment Bill, the Excise Duty Amendment Bill, the Growth and Sustainability Amendment Bill are expected to generate approximately GH¢4 billion annually if passed.
Ministry of Finance sources estimate that the Income Tax Amendment Bill will generate GH1.2 billion annually and exempt those earning minimum wage from paying taxes. The Excise Duty Amendment Bill aims to generate an additional GH¢400 million through taxes on e-smoking and fruit juice.
Growth and Sustainability Amendment Bill replaces the National Fiscal Stabilization Levy, which currently taxes some companies in particular sectors, and is expected to raise approximately GH¢2.2 billion. Growth and Sustainability Amendment Bill replaces the National Fiscal Stabilization Levy, which currently taxes some companies in particular sectors, and is expected to raise approximately GH¢2.2 billion.
Originally planned to pass alongside the Appropriation Bill, the passage of the bills has been delayed due to the opposition’s lack of cooperation. The government has stated that these revenue measures are essential to secure approval from the International Monetary Fund (IMF) Board for the country’s $3 billion bailout deal.
Passing these bills is a crucial milestone towards securing the IMF’s approval. The government has already completed the Domestic Debt Restructuring Programme (DDEP) to ensure debt sustainability by replacing high-yielding bonds with low-yielding ones.
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Source: Omanghana.com/SP
