Category Taxation in Ghana

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...

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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...

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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...

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Ghana Increases VAT

November 18, 2013 Taxation In AfricaTaxation in Ghana

GhanaACCRA – In an effort to raise funds for social development and to reduce the country’s reliance on foreign aid, the government of Ghana has introduced a small hike to sales tax.

Late last week the parliament of Ghana voted on and approved a hike of 2.5 percent to the national value added tax, from the current rate of 12.5 percent to 15 percent.

The Deputy Finance Minister of Ghanna Cassiel Ato Forson said that even such a small increment in the tax rate could raise as much as GHS 745 million over the course of the 2014 fiscal year.

The extra funds raised through the hiked tax rate will be used specifically to finance new social infrastructure developments, such as new schools, roading, and healthcare facilities.

According to the Finance Minister, the rise will also help Ghana reduce it...

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Ghana May Introduce New Mobile Taxes

July 5, 2013 Taxation in Ghana

Mobile PhonesACCRA – The cost of purchasing and using cellphones in Ghana could soon incrase, as the government looks at introducing several new taxes on the mobile industry.

The Parliament of Ghana is currently reviewing, and within days is expected to approve, new legislation to amend the Communications Service Tax Act in order to introduce a new 6 percent tax on inbound international phone calls, and a 20 percent duty on importing cellphone handsets.

The 6 percent call tax will be paid by the local network operator handling the connection, but industry experts believe that the entirety of the cost will be passed directly to the consumers.

The import tax is intended to protect the cellphone manufacturing industry in Ghana, and also aimed to encourage consumers to purchase handsets produced in the cou...

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