The Government of Ghana has proposed to Parliament three amended bills as part of measures to revamp domestic revenue mobilization.
The three amended bills (the Income Tax Amendment Bill, the Excise Duty Amendment Bill and the Growth and Sustainability Amendment Bill) when passed, will together rake in about GH¢4 billion annually.
A prominent source at the Ministry of Finance disclosed in an interview that the Income Tax Amendment Bill, which is expected to rake in GH¢1.2 billion, would still exempt those who earn the minimum wage from paying tax.
However, the bill, according to him, when becomes law, would alter the way foreign exchange losses are treated in financial statements.
The source added that the Excise Duty Amendment Bill would also rake in an additional GH¢400 million through the imposition of a 20 percent tax on e-smoking, as well as fruit juices.
The Growth and Sustainability Amendment Bill, he said, would replace the National Fiscal Stabilisation Levy, which is currently levied on companies operating in selected sectors, such as telecommunications, mines and extractives, breweries and financial institutions.
“The passage of the amended bills was supposed to have been done together with the Appropriation Bill, but their passage has been delayed.
“The three major revenue measures are critical towards securing the approval of the International Monetary Fund (IMF) Board for the country’s $3 billion bailout deal. Most critical of the actions was the passage of the outstanding domestic revenue measures.”
Source From The Ministry of Finance
Although Ghana was not discussed during the IMF Board meeting yesterday, the authorities are hopeful the country will be on the agenda shortly after, once certain critical actions are completed.
Deputy Finance Minister Claims IMF March Deadline Was Communicated To Quicken Up Actions
Meanwhile, the Deputy Minister of Finance, Dr. John Kumah communicated during an interview that as the first quarter of the year draws to an end, an assessment of Ghana’s progress towards approval by the IMF Board showed that significant progress has been made, with the board approval likely to happen sooner than later.
According to the deputy minister, the government set for itself March this year to secure the IMF deal to support the challenged economy.
The ambitious deadline, as mentioned by him, was to ensure that the necessary attention and urgent treatment were given to all actions that must be taken towards key milestones the country must achieve before securing the IMF board approval for the IMF-backed programme.
The next step in Ghana’s IMF pathway is to have the board to endorse the programme. Dr Kumah explained that the country has been very diligent in its interactions with the IMF since it started to work on a programme in July last year.
“This is a strong achievement that shows rapid progress and great cooperation and also firms up the commitment of the IMF to support Ghana for up to $3 billion over four years. It is, therefore, critical for Parliament to pass the three proposed revenue measures to enable Ghana’s programme to be laid before the IMF Board for approval.”
Dr. John Kumah
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