Government promised in the 2017 Budget to remove some taxes to free additional capital for businesses and provide relief to consumers.
In line with this, the following taxes were abolished:
one percent Special Import Levy imposed on imported raw materials and machinery;
17.5 percent VAT/NHIL on Financial Services;
17.5 percent VAT/NHIL on domestic airline tickets;
Excise duty on Petroleum;
Import duty on specified vehicle spare parts;
five percent VAT/NHIL on Real Estate sales;
17.5 percent VAT/NHIL on selected imported medicines not produced locally;
Levies imposed on ‘kayayei’ by local authorities.
The following taxes were reduced:
Special Petroleum Tax reduced from 17.5 percent to 15 percent;
Energy sector levy rates for National Electrification and Public Lighting also reduced from 5 percent to 2 percent and 5 percent to 3 percent respectively;
Exemption from tax, gains from realization of securities listed on the Ghana Stock Exchange for a period of 5 years;
Replacement of 17.5 percent standard rate with a 3 percent flat VAT/NHIL rate for supplies by retailers and wholesalers.
The following tax measures were also implemented:
As part of measures to streamline tax exemptions, Government piloted a refund policy. Based on the lessons learnt, structures, including a paperless system will be implemented for granting and monitoring tax exemptions. Government, in 2018, will introduce a comprehensive policy on the tax exemption regime.
The Fiscal Electronic Device Bill was laid before Parliament; and
The Excise Tax Stamp policy was launched.
Paperless Port System;
To improve efficiency at the Ports, the Ministry introduced paperless transaction at the Ports. The implementation of the paperless system significantly reduced transaction time from 2 days to 8 hours (of compliant transactions) whilst revenue from the Port increased by 35.4 percent.
Source: Erica Arthur / Business.com.gh