Fidelity bank banner Bayelsa State banner
Ghanaians to pay more tax as economy slows

By News Express on 18/01/2016

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,567


Ghana’s economy is set to slow for the fourth consecutive year, according to African Development Bank statistics, but the government has nonetheless imposed new taxes and raised taxes on gasoline.

“The question is: Can consumers support new taxes at a time when their income is reduced?” asked Godfred Bokpin, economist and lecturer at the University of Ghana.

The key cocoa industry, which generates about one-third of the country’s exports, has seen production decline by 40 percent over the past three years.

While growth is still forecast at 3.4 percent in 2015, it is down from 4.2 percent in the previous year.

The International Monetary Fund (IMF) on Wednesday announced a loan of $114.6 million to the Ghanaian government on Jan. 13, but that came with conditions, including a demand for fiscal consolidation.

“With government debt continuing to increase and financing remaining a challenge, the 2016 budget rightly aims at a stronger consolidation than originally envisaged,” the IMF said in a statement after announcing the loan.

To implement IMF policy, the government passed the Income Tax Act, 2015 on Sept. 1, which added a number of new taxes that may pressure Ghanaians in the poor economic climate.

The new taxes are to yield additional revenue equivalent to 0.3 per cent of GDP, according to government estimates.

There are quite a few new taxes, including a 1 percent tax on interest income, whether from bank deposits or investments. Capital gains tax has been raised to 25 percent from 15 percent.

Ghanaians who earn income abroad will now be taxed on the full amount at home – previously only income earned in the country was taxed.

Mortgage interest charges will be deductible only for one building owned by the taxpayer – previously all mortgage charges could be taken off taxes.

Fees paid to lecturers and board members will also be taxed at 10 percent, and the corporate tax on manufacturing was raised to 75 percent, although it remained at 25 percent for other sectors.

On top of all these new taxes, Ghanaians were slapped with an 18 to 27 percent tax increase in petroleum products on the first working day of 2016. Gasoline now sells at GHS 3.464 ($0.90) per liter, up from GHS 2.661 ($0.70).

And, in December 2015, Ghanaians were slapped with increases in water and electricity tariffs. Water went up by 59.2% while electricity went up by 67.2%. The increase was approved by the Public Utilities Regulatory Commission.

But economist Bokpin warned of the dangers new taxes could bring, as Ghanaians have a low savings rate. “When you impose additional taxes, you are squeezing both companies and individuals. There is a real risk that they may not have sufficient funds left for living expenses,” Bokpin warned.

Organised labour has announced it will embark on a nationwide strike from Jan. 22 as part of a series of actions planned to protest the increments.  (Anadolu Agency)

•Photo shows Ghanaian President John Mahama.

Source News Express

Posted 18/01/2016 8:20:44 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
Air Peace passenger steals N1m on board flight,...

Robbery suspect released for lack of case file...

Charlyboy leads protest to NNPC HQ over fuel...

Bayelsa declares N3.5b surplus after deductions

2017: Hold unto God’s unchanging hands, Ikpeazu tells...

Saraki urges committees to ensure full compliance on...

Unlawful, forceful removal of chiefs now attract arrest...

Cameroon, Egypt set for 2017 AFCON final showdown...

ICT varsity takes off in September

Court declares ‘State of Osun’ illegal, scolds Aregbesola...

CNPP vows to resist fuel tax

Boko Haram Trial: Testimony of witnesses to hold...

 

Latest News APC Convention: Panic over Okorocha’s minority report Police warns troublemakers as APC Convention holds in Abuja •Deploys 5,000 personnel, armoured personnel carrier Bandits launch fresh attack on Birnin-Gwari, kill more persons Pastor, 2 others nabbed over ritual killing of 19-year-old girl APC holding national convention with looted funds – PDP Buhari championing jihad in Nigeria: Christian Elders APC Convention: Oshiomhole will delete PDP from Nigeria’s political history — Senate Deputy Chief Whip NAFDAC DG sacks consultants over anomalies, irregularities Police dismisses 19 officers in Ogun, demotes 9 2018 Budget: Why we included new projects — NASS PDP queries DSS over Abaribe’s arrest World Cup: Rohr reveals secret of Super Eagles’ victory over Iceland

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (352,709 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (352,387 views) Shameless Genevieve Nnaji exposes breasts in public (280,676 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (230,416 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (209,283 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (209,122 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (182,072 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (164,241 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (154,057 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (148,864 views) Lagos plane crash: Journalist releases victims’ names (144,045 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (135,819 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (50) Business & Economy (3,264) Business Verdict (44) Columnists (871) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (506) Features (607) Global Business Monitor (284) International (2,047) Interview (155) Live Commentary (28) Love Matters (124) News (36,418) Opinion (1,005) Pidgin (10) Politics (5,313) Religion (772) Sports (1,558) Stock Watch (30) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Argentina vs Croatia Goals

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement