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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