Gov't to tax monthly earnings above ¢20,000; scraps 35% tax on incomes above ¢10K

Finance Minister Ken Ofori-Atta[/caption] Government has announced it is scrapping the 35 per cent income tax imposed on earnings monthly earnings above 10,000 cedis. Finance Minister Ken Ofori-Atta said on Thursday that following concerns raised about the introduction of the tax in July this year, government has now resolved to charge persons whose monthly earnings is above 20,000 cedis, a 30 per cent tax on their income. “We have listened to feedback from across the aisle and propose to review the band to impact monthly income above GHc20,000, and also at a rate of 30 percent,” he announced when he presented the 2019 Budget Statement and Economic Policy to Parliament. To this end, he said the government “will bring the necessary changes” for parliament to consider and legislate but did not say when. The 35 per cent tax on monthly incomes above 10,000 was one of taxes, including the controversial luxury vehicle tax, introduced by the government in the July 19, 2018 Mid-Year Budget in a bid to raise adequate revenue to fund projects and programmes promised the people of Ghana.

Though the tax was criticised by MPs and organised labour, the government justified its introduction and went ahead to implement same. Barely five months on, the Finance Minister said Thursday that the concerns raised by critics have been considered by the government, hence the decision to review the tax. “We have listened to the feedback from across the public and come to the conclusion that some relief from this tax measure is justified,” he explained.
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