The new tax measures introduced is expected to yield over $64 million

July 31, 2019 6:26 PM

The tax measures announced by the Finance Minister, Ken Ofori-Atta, during his presentation of the mid-year budget is expected to generate additional revenue of GHC 349.1 million($64.7 million).

Ken Ofori-Atta

Presenting the mid-year budget in Parliament, Ken Ofori-Atta announced several tax measures to make up for the poor revenue performance.

The Communication Service Tax popularly referred to as Talk Tax has been increased from 6 to 9%. There were also increases in the rates of the road fund, energy debt recovery, and the price stabilization and recovery levies — all components of the ESLA.

Meanwhile, the luxury vehicle tax was withdrawn. This tax was initially projected to generate GHC598.1 million in the 2019 fiscal year.

The additional revenue from the tax increases is expected to provide some cushion for the government.

Despite the more than GHC4.2 million shortfall in the government’s domestic revenue, the GHC58.9 billion set in the 2019 budget remains unchanged.