2019 BUDGET STATEMENT AND ECONOMIC POLICY PRESENTED TO THE PARLIAMENT OF GHANA ON THURSDAY 19TH NOVEMBER 2018 PROPOSED TAX ISSUES
Below is a summary of tax policies intended to be implemented by the Government of Ghana in 2019 as stated in the 2019 Budget and Economic Policy
SUMMARY
TAX POLICY INITIATIVES
- Increase the tax free threshold from GH¢261.00 a month to the Minimum Monthly wage level of GH¢ 10.65 per day, by amending the First Schedule of Income Tax Act, 2015 (Act 896) as amended.
- Revise the Income Tax Band for Resident Individuals by introducing a monthly tax rate of 30% for monthly chargeable income exceeding GH¢20,000.00. This will replace the 35% tax rate for monthly chargeable income exceeding GH¢10,000.00 which was introduced in August 2018
- Government support and incentives to local textile manufactures to enable them compete with imported products. Measures include the use of Tax Stamps and charging supplies at Zero rate.
- Encourage the use of electronic vehicles as a means of protecting the environment.
- Providing tax incentives for business entities that take part in Government’s flagship programs for industrialization. Such incentives include tax holidays and exemptions from import taxes.
- Implementation of Ecowas Common tariffs to address cross-border smuggling and combat dumping.
- Simplify collection of tax from small-scale miners by shifting the withholding tax point to the point of export.
- Address loopholes and lapses in the administration of taxes in the mining industry.
IMPROVE REVENUE MEASURES
- Intensify Tax Compliance measures and recovery of Tax Debt – Government intends to take both administrative and legal measures to recover taxes which are in arrears.
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