Category Taxation in Ghana

Ghana Will Snoop on Phone Calls To Help Tax Revenues

July 27, 2018 Taxation in Ghana

mobileACCRA – Ghana will start monitoring all phone calls, texts, and data usage as a means of ensuring telecommunications companies pay enough tax.

Earlier this month the Human rights Court in Ghana dismissed a claim that the government’s planned mobile monitoring technology is a breach of privacy.

The monitoring system, called the Common Platform, is intended to help the government ensure that telecommunications companies are accurately reporting traffic and usage, and subsequently declaring the full extent of their incomes.

While the system is claimed to be only for the monitoring of revenues, the system would allow the government access to the contents of voice calls, data usage, and messages sent in Ghana.

Opponents of the system claim that this would breach users’ rights to privacy, a...

Read More

Ghana Launches Luxury Vehicle Tax

July 20, 2018 Taxation in Ghana

Luxury car tax in GhanaACCRA – Despite expectations of a VAT hike, Ghana has surprised pundits by enacting a tax on luxury vehicles.

On July 19th the government of Ghana announced that it would be enacting a new tax on vehicles with large-capacity engines, with the new tax to be billed as a luxury vehicle tax.

The latest tax would be set at GHS 1 000 for cars with engine capacities of between 3.0 litres and 3.5 litres, while cars with capacities of between 3.6 litres and 4.0 litres would see a tax of GHS 1 500, and all cars exceeding 4.1 litres would face a tax of GHS 2 000.

The taxes would be applicable to all non-commercial vehicles, and would need to be paid each year.

The new tax is understood to have come as a surprise to many experts who believed that the government would announce a hike to the rate of VA...

Read More

Ghana Needs Drain Tax

October 3, 2017 Taxation in Ghana

The Drain (i)ACCRA – Ghana needs to tax property owners in order to fund anti-flooding measures.

The World Bank is recommending that the government of Ghana begins levying a new tax to help pay for the construction of drainage and anti-flood measures in the country.

The suggestion for a so-called drainage tax came after a tour of selected flood-prone areas by a working group at the bank.

It was suggested that a drainage tax be set up to be directly property owners, hotels, and individuals who live in flood-prone lowland areas.

In addition to funding flood-water drainage infrastructure, the funds raised by the tax could also be used to build and maintain wastewater disposal facilities in cities.

Flooding is a significant problem in Ghana, with recent floods in 2015 killing hundreds of people.

The gov...

Read More

Ghana Seeks Bailout Loan

August 11, 2014 Taxation in Ghana

ACCRA – Soaring government expenditures and plummeting tax revenues have forced Ghana to seek financial aid from the International Monetary Fund.

Late last week the International Monetary Fund issued a statement announcing that the government of Ghana has officially requested a new bailout loan in order to meet its debt obligations and expenditure requirements.

Currently the budgetary deficit in Ghana has reached a level of 10 percent of the national GDP, and the government’s own cash reserves are dwindling, leaving little room for the government to meet its payment obligations.

The finance minister of Ghana Seth Terkper already confirmed that the government would also seek to raise as much as USD 1.5 billion through international bond issuance over the course of the year.

The current f...

Read More

Multinationals Overuse Ghana’s Tax Incentives

February 27, 2014 Taxation in Ghana

Tax Incentives in GhanaACCRA – Ghana’s reliance on tax incentives is draining the national coffers while hurting the country’s standing with its neighbors in the region.

The preliminary results of a new study being conducted by Action Aid Ghana are showing that since the year 2000 the national government has spent approximately USD 1.2 billion annually on tax incentives for multinational businesses in an attempt to attract greater levels of foreign direct investment.

The new data was presented by Action Aid and the Integrated Social Development Center at a national conference on February 26th aimed at encouraging the media to take a stronger stance against some of the perceived exploitation of the country by international corporations.

The results of the study indicated that the amount given out each year in...

Read More