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Despite recent headwinds, the economy remains robust and resilient with significant improvements in several core indicators over the past 12 months. This can be cross-checked across several independent assessments by other domestic, institutional and multilateral stakeholders.
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The economy responded well to the last year’s budget tax cuts – i.e. the nuisance taxes!
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No increment in VAT (progressive citizens won the day!). Need I say more?
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Special taskforce to enforce VAT and ensure revenue compliance – awesome! I like the new mojo of GRA in going after companies that are defaulting on their taxes.
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Forensic audit of multinational companies on transfer pricing – this is a major move! I’d be happy to assist the government on the extractives sector – oil and gas and mining space (I’ve got ideas on how to check abuse in the extractives sector)
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Prosecutions of persons and companies for tax evasion and malfeasance
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Net fiscal adjustment of 0.4% of GDP (~900 million) needed to achieve 4.5% fiscal deficit target in line with programme commitments including IMF, hence requiring revised fiscal outlook
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New tax measures but also increasing tax compliance and adjustment of discretionary expenditures
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Luxury vehicle tax for cars with more than 3-litre engine capacity – commercial vehicles exempt!. Yeah, let’s tax all those crazy gas-guzzling V8s! I hope no one is given an exemption! Yes, no one!
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Additional personal income tax band of 35% PAYE for those earning GHS10K per month (GHS120K per year). Those earning more have to chip in, don’t we? This is progressive!
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Potential outsourcing of government payroll to a third-party vendor to ensure compliance, particularly meet WAMI convergence criteria of 35% wage bill-to-tax revenue from current 48%
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New model of financing infrastructure through leveraging of natural resources through SWAP/BARTER arrangement with moratorium period provided – China’s Sinohydro to provide USD 2bn of infrastructure (roads, hospitals, housing, interchanges, etc) in exchange for refined bauxite. Ghana to establish a refinery in next three years, and this will not add to the budget deficit!
