Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

November 30, 2022
2022-6145

Ghana | Tax highlights of 2023 Budget Statement and Economic Policy

  • The Minister has presented the 2023 Budget Statement and Economic Policy.

  • This Alert highlights the proposed tax measures.

Executive summary

On 24 November 2022, Ghana’s Minister for Finance and Economic Planning, Honorable Ken Ofori-Atta (the Minister), read an abridged version of the 2023 Budget Statement and Economic Policy (the 2023 Budget) in Parliament on the authority of Ghana’s President in accordance with Article 179 of the 1992 Constitution of Ghana.

This Alert summarizes the key aspects of the 2023 Budget relating to tax.

Detailed discussion

The 2023 Budget is focused on resetting Ghana’s economy and restoring macroeconomic stability. The Minister stated that the Government was seeking to significantly enhance revenues, cut down the cost of running government, expand local production, invest more to protect the poor and vulnerable, continue expanding access to good roads, education, and health care for every Ghanaian. To improve revenue collection, the Minister indicated that the Government will be leveraging technology to enhance tax administration, identify and register taxable persons and improve compliance. Consequently, the Minister outlined the tax measures, highlighted below, to be introduced.

Value Added Tax (VAT)

The Government of Ghana has proposed to increase the VAT rate by 2.5 % to directly support the roads and digitalization agenda.

Property tax

The implementation of the Unified Property Rate Platform program will be fast-tracked in 2023.

Electronic transfer levy (E-Levy)

In respect of the E-Levy, which is charged on all electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances, the Government has proposed to review the levy in 2023 and determine the next line of action which will include a revision of the various exclusions to the E-Levy.

In line with this, the Government has proposed to reduce the headline rate charged on the transaction value from 1.5% to 1% and to also remove the daily threshold.

Income tax

The Minister indicated that the income tax regime will undergo reforms in 2023 which will include a review of the upper limits for vehicle benefits and the introduction of an additional income tax bracket of 35%.

Tax waiver

The Minister stated that there will be a freeze on new tax waivers for foreign companies. Also, tax exemptions for free zones, mining and oil and gas companies will be reviewed.

Other measures

The Minister said that: (i) the Government will initiate measures to overhaul the tax structures in the extractive industry; and (ii) enforce compliance with the legal and regulatory framework on foreign exchange.

___________________________________________

For additional information with respect to this Alert, please contact the following:

Ernst & Young Chartered Accountants, Accra

Ernst & Young Société d’Avocats, Pan African Tax – Transfer Pricing Desk, Paris

Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London

Ernst & Young LLP (United States), Pan African Tax Desk, New York

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2024, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more