Government of Ghana will not introduce new taxes in its budget for 2020, a top official revealed here on Friday.
Speaking in an interview during preliminary budget consultations ahead of the 2020 budget deputy minister for finance in charge of revenue, Kwaku Kwarteng said the government would rather strengthen revenue mobilization measures to ensure to achieve its revenue targets.
“Next year we have no plans to introduce new taxes. We will continue to review some of the reliefs we gave this year,” Kwarteng said.
The government introduced a policy that reduced by 50 percent of the benchmark value for customs duties, which reduced by half the taxes charged by customs on imports.
The government’s main reason for the tax reduction the minister said was to use tax incentives as catalysts for growth in the productive sectors of the economy.
However, the minister said, “We are going to review this, because, we are also getting feedback from domestic manufacturers that in some specific areas, this policy is counter-productive.”
Ghana is set to miss its annual revenue targets set for this year, due to the generally low performance in revenue mobilization.
“What the government has to do to improve upon revenue mobilization is to expand the tax net so that many more citizens and institutions can pay
“The current situation where only about 1.2 million people pay tax is unfair,” Joseph Obeng, President of the Ghana United Traders Association (GUTA) told Xinhua. Enditem