What the 2018 Budget Say about Taxes

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;

Others include:
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 /