Government to increase tax-to-GDP from 13% to 20% to support GHc100bn project

Government to increase tax-to-GDP from 13% to 20% to support GHc100bn project

- Ken Ofori-Atta, the Finance Minister, has hinted of plans to help boost the mobilisation of revenue

- He added that there is also a plan to increase tax-to-GDP from 13% to 20%

- The plans will help raise an estimated GHc30 billion to support the GHc100 CARES programme

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The Minister of Finance, Ken Ofori-Atta, has revealed plans by the government to increase revenue mobilisation and the tax-to-GDP ratio.

YEN.com.gh understands that the intent is to push the ratio from the current 13 percent to 20 percent.

This, he said, would be possible if mobilization of revenue is increased and the economy is digitalised.

Gov’t to increase tax-to-GDP from 13% to 20% to support GHc100bn project
Minister of Finance, Ken Ofori-Atta Source: thebftonline.com
Source: UGC

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He added that the government would then be well-positioned to raise GHc30 billion to support the recently announced GHc100 billion Ghana CARES programme.

Per a report by thebftonline.com, the project is aimed at reviving the economy from the effects of the coronavirus.

Ofori-Atta noted that property taxes and tax exemptions would also be channeled in support of the attempt to raise the GHc30 billion.

The minister further stated that the government is committed to prioritising the well-being of Ghanaians.

This, he further stated, would be achieved through an agenda to transform the economy.

In other news, Ken Ofori-Atta has called for deeper reforms as Africa combats the outbreak of the coronavirus.

In his opinion, the coronavirus pandemic has undoubtedly had the greatest economic impact since World War II.

He added that Ghana expected to record a GDP growth of 6.8 percent in 2020 but is currently projecting a 1.2 percent growth.

READ ALSO: Bank of Ghana to build reserves of up to GHc300 million to deal with cedi depreciation

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Source: Yen

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