Parliament is set to vote on three new tax bills that could have significant implications on Ghana’s economy in the coming years.
The proposed legislation including the Growth and Sustainability Levy Bill, Excise Duty and Excise Tax Stamp (Amendment) Bills will all be up for a vote in Parliament today.
The IMF Board’s approval of the $3 billion International Monetary Fund Programme staff-level agreement will be made easier with the approval of these unpaid revenue mobilisation bills.
The bills have been the subject of intense debate and lobbying from various interest groups, with some arguing that the changes will spur economic growth while others have warned of potential negative impacts.
The passage of all the outstanding revenue Bills is deemed by the government necessary for effective Budget implementation as well as boosting efforts at increasing Tax-to-GDP from less than 13% to the sub-Saharan average of 18%.
Already, the government has completed tariff adjustment by the Public Utilities Regulatory Commission (PURC), Publication of the Auditor-General’s Report on COVID-19 spending, and Onboarding of Ghana Education Trust Fund (GETFund), District Assemblies Common Fund (DACF) and Road Fund on Ghana integrated financial management information system (GIFMIS).
The outcome of today’s vote will have significant implications for businesses and consumers alike – especially after the international and domestic bond markets are shut for the financing of government programmes, forcing the government to rely on Treasury Bills and concessional loans as the primary sources of financing for the 2023 fiscal year.
