Ghana is relied upon to round up an all out income of GHS100.5 billion out of 2022, Finance Minister Ken Ofori-Atta has declared.
“Mr Speaker, total revenue and grants for 2022 is projected to rise above GHS100 billion for the first time – GHS100.5 billion, equivalent to 20 per cent of GDP up from a projected outturn of GHS70.3 billion, equivalent to 16 per cent of GDP for 2021”, Mr Ofori-Atta told parliament on Wednesday, 17 November 2021 when he presented the 2022 budget.
He said: “Domestic revenue is estimated at GHS99.5 billion and representing an annual growth of 44 per cent over the projected outturn of 2021”.
“The increase in domestic revenue by 44 per cent”, he noted, “is as a result of the impact of a major progressive tax policy complemented by improvement in tax compliance and reforms in revenue administration that we have outlined in the budget”.
Mr Ofori-Atta additionally saw that in spite of the COVID-19 pandemic, not a solitary public area laborer was laid off.
In the mean time, the public authority has shown that it will smooth out the nation’s duty system to keep enormous organizations from mishandling charge exclusions.
With Ghana losing around five percent of its Gross Domestic Product (GDP) yearly because of overabundances in expenses of organizations working in the free zones territory, the public authority says it is setting up measures to deal with inefficient assessment exceptions.
In a similar spending plan, Mr Ofori-Atta said the public authority, through the Exemptions Bill which will be laid in the house in 2022, will manage down inefficient duty exclusions to guarantee the nation acquires huge gets back from organizations appreciating charge exceptions.
“We wish to reiterate that we are in challenging times, which require radical measures; so, let us embrace these new policies to enable the government to address the fundamental issues affecting the economy to ensure that our nation continues to maintain its position,” he said.
More Reliefs for Textile Industry
The Minister additionally reported a two-year augmentation of the Value Added Tax (VAT) alleviation on African prints for material producers in the country. As per him, the augmentation is to empower them to revive their tasks and give reasonable materials to the market.
Restricting of VAT level rate to retailers
Mr Ofori-Atta additionally demonstrated that the 3% VAT (level rate) on the stock of products by wholesalers and retailers which was presented in 2017, will currently be restricted to just retailers clarifying that any remaining inventory of labor and products will draw in the standard rate.
The pastor clarified that the object of the level rate is to give a worked on framework to limited scope ventures noticing that to guarantee that this goal is accomplished, the rate will be applied to retailers with yearly turnover not surpassing GHS500,000.
Any remaining retailers and wholesalers will charge the standard rate.