Parliament passes 3 VAT amendment bills

Parliament in section

Parliament in section

Parliament has passed three tax amendments to the Value Added Tax (VAT) before it went on recess on Saturday.

The amended taxes are the Ghana Education Trust Fund (GETFund) and the National Health Insurance Levy (NHIL) Amendment Bills, 2018.

Finance Minister, Ken Ofori-Atta, when presenting the Mid-Year Review of the Budget Statement and Economic Policy of the Government for the 2018 fiscal year on July 19, proposed the amendment of the taxes.

The new amendments seek to restructure the VAT to address government’s revenue challenges.

The amendment pegs the GETFund and the NHIL at 2.5 per cent rate each as straight levies reducing the VAT tax rate which used to be 17.5 per cent to 12.5.

The House also passed the Income Tax Amendment Bill which is expected to charge 35 per cent of personal incomes exceeding GH₵10, 000 to the government.

Governs Kwame Agbodza, MP, Adaklu, described the above tax as “repressive” and a means to extort from well to do people in society and challenged government to find better ways to raise revenue.

But a Deputy Finance Minister, Kwaku Kwarteng said the new tax measure would add about GH₵300 million to the state’s kitty.

The House also passed what has now been known as ‘vehicle tax’ which is applicable to vehicles with engine capacity of 3.0 litres and above.

Per the new tax, vehicles with engine capacities between 3.0 and 3.5 litres would attract an annual tax of GH₵1,000 whiles those with engine capacities of between 3.6 and 4.0 litres will pay GH₵1,500 and those with 4.1 litres and above are expected to pay GH₵2,000.

BY JULIUS YAO PETETSI

email
Print Friendly

Leave a Comment