Some Taxes are presented in the budget for the year 2023 as some revenue measures to offset the negative outlook of the Ghanaian economy and boost revenues.
Consequently, e-Levy has been reduced from the 1.5 to 1% effectively.
After rigorous deliberations on the Ministry’s wishes of removing the GHC100.00 daily threshold, parliament rejected such a proposal presented in the 2023 Budget statement.
And sought the removal of that clause from the Budget proposal: as it will have a negative impact on the gains of E-Transactions and the poor.
This means for every first GHC100 transaction attracts zero charges for E-Levy but 1% after every transaction from the threshold daily
Value Added Tax (Amendment)(No2), Act 1087,2022 was to amend the Value Added Tax Act, 879, 2013.
For the amendment, VAT standard rates have been increased by an additional 2.5% raising the 12.5% to 15%.
The Effective Tax rate applicable will now be 21% more than the 19.25% there was.
NHIL 2.5% and GETFund 2.5%, COVID Levy 1%, VAT 15%, and Tourism Levy of 1% (subjective). The VAT Flat Rate is exempt from this increase.
Also, sports betting and listed games of chances are taxable activities under VAT thus VAT- Exempt supplies. A bill has been laid to especially tax betting and “Games” Incomes.
Some expressed joy over the reduction and the rejection of “No Threshold”
