- Since President Nana Addo Dankwa Akufo-Addo assumed office in 2017, his administration has introduced 50 new taxes affecting both Ghanaians and businesses. This development, highlighted by Dr. Cassiel Ato Forson, the Minority Leader in Ghana’s Parliament, has sparked significant debate and criticism.
- Dr. Ato Forson criticized these tax measures for burdening impoverished citizens and businesses, contrasting sharply with the government’s initial promise to transition from a tax-based economy to a production-based one. Entrepreneurs, economists, and policymakers have expressed concerns about the potential long-term implications for the country’s economic future.
- Here are some of the notable taxes introduced since 2017:
- 1. 3% VAT Flat Rate
- 2. 5% Increase in VAT
- 3. Conversion of GETFUND & NHIL Levies to Taxes
- 4. 25% Increase in Corporate Tax
- 5. 2% Special Import Levy
- 6. 1% COVID Levy + 3% VAT = 4%
- 7. 1% COVID Levy on 2.5% NHIL Levy
- 8. 5% Fiscal Stabilization Levy
- 9. 5% Financial Sector Cleanup Recovery Levy
- 10.1% E-Levy
- 11. 20p Levy on a Litre of Petrol/Diesel
- 12. 10p Sanitation (Borla) Levy on a Litre of Petrol/Diesel
- 13. 18p Levy on LPG
- 14. 2.5% Increase in VAT
- 15. Luxury Vehicle Tax
- 16. 50% Increase in Call Tax
- 17. 30% Increase in the Energy Sector Levy (ESLA)
- 18. 11% Increase in Special Petroleum Tax
- 19. 200% Increase in BOST Margin
- 20. 40% Increase in Price Stabilization & Recovery Levy
- 21. 25% Increase in Primary Distribution Margin
- 22. 36% Increase in Unified Petroleum Price Fund
- 23. Road Fund Increase
- 24. 10% Withholding Tax on Betting, Lottery, etc.
- 25. 20% Increase in Tax on Betting Companies
- 26. 35% Increase in Income Tax
- 27. 3% & 10% Withholding Tax on Assets & Liabilities
- 28. 25% Increase in Tax on Gifts & Gains
- 29. Profit Before Tax Levy on Companies
- 30. 5% Tax on Companies Declaring Losses
- 31. Tax on Motor Vehicle Benefits
- 32. 1.75% Tax on Bank Transfers
- 33. 1.75% Tax on Remittances (Borgo Tax)
- 34. 15% Increase in Government Fees
- 35. 35% Increase in Corporate Tax on Mining Companies
- 36. 22% Corporate Tax on Hotels
- 37. Excise Duty for Owning a Car, Motorbike, etc.
- 38. 1% Stamp Tax
- 39. 35% Payroll Tax (PAYE)
- 40. Customs & Excise Duty on Sachet Water, Bottled Water, Malt Drinks, Beers, Wines, Spirits, Cigars, Plastic Products, Textiles, etc.
- These taxes have raised alarm among various stakeholders, prompting a critical examination of their impact on the country’s economic stability and growth. As the debate continues, it remains to be seen how these measures will shape Ghana’s economic landscape in the coming years.