GRA To Enforce Tax On Foreign Incomes Of Ghanaians In Latest Revenue Mobilisation Drive
- In an attempt to fill a revenue gap, the government of Ghana has set into motion plans to enforce a tax on the foreign incomes of Ghanaian residents
- This is a result of the rejection of the Value Added Tax on electricity consumption earlier this year by Ghanaians
- The GRA is hopeful that the revenue generated from the implementation of the tax will exceed the revenue targets
The government of Ghana has announced plans to enforce a tax on the foreign incomes of Ghanaians living in Ghana.
This follows the abandonment of the Value Added Tax on electricity following severe backlash from Ghanaians burdened by a rising cost of living.
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The abandonment of the International Monetary Fund-approved tax measure has left a revenue gap of GH¢1.8 billion, contributing to a revenue shortfall.
To fill the gap, the government says its latest measure is to ensure compliance with a tax measure on the foreign incomes of Ghanaians who have stayed in the country for more than 182 days.
According to the newly appointed Ghana Revenue Authority (GRA) boss, Julie Essiam, the measure is not a new one at all.
She explained that it has been in existence for a while.
However, its implementation has not been optimal.
To ensure the optimisation of the revenue collection she stated that the GRA has put strong and structural measures in place to ensure revenue generated from this tax fills the current revenue gap and more.
The GRA said foreign income account holders have been allowed a three-month grace period to declare their accounts to the authority voluntarily.
It stated that those who do so within the stipulated time will have the interest on their accounts waived.
Meanwhile, the GRA will send letters to account holders to encourage them to declare their accounts.
Ghana’s Parliament approves five new taxes
Ghana's Parliament approved five new tax bills to boost revenue collection following the 2024 budget.
The new tax bills are the Value Added Tax (Amendment) Bill, 2023, Emissions Levy Bill, 2023, Excise Duty (Amendment) (No. 2) Bill, 2023, Stamp Duty (Amendment) Bill, 2023 and Exemptions (Amendment) Bill, 2023.
The Finance Committee said the bills were necessary to extend the coverage of VAT to other sectors.
He said the entire membership of the committee supported the zero-rating of VAT on materials for producing sanitary towels.
Alan to abolish nuisance taxes
Meanwhile, YEN.com.gh reported that the founder and leader of the Movement for Change, Alan Kyerematen, says he intends to make Ghana the country with the lowest tax regime in ECOWAS if elected president.
He noted that there are several unnecessary tax handles at the Tema port that are hindering seamless business transactions.
He intends to abolish most of these taxes and consolidate a few others to ensure that taxes at the port do not hinder businesses.
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Source: YEN.com.gh
