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Wealthy people need to pay more taxes - Tax analyst

Tax Increase202121212 The will to tax the rich not there, Francis Timore Boi claims

Wed, 26 Jan 2022 Source: www.ghanaweb.com

Increase minimum taxable income to GH¢500 - Tax analyst to govt

The will to tax the rich not there, Francis Timore Boi alleges

Tax analyst hopeful GRA's high net-worth tax payers initiative resolve the issue of low taxation of the rich

Tax Analyst, Francis Timore Boi has said punched holes into the taxation system in the country.

He said in every progressive taxation system, the rich pay more taxes but the case is different in Ghana.

Mr Boi said the taxation of the rich at a maximum marginal rate of 25% to 35% was reviewed downwards to 30% after public uproar.

He stated that the Ghana Revenue Authority's (GRA) ‘High Net-worth Tax Payers’ initiative will ensure that the rich pay the necessary amount of money as tax to the state.

This, the tax analyst said, will help resolve the issue of low taxation of the rich in the country.

Francis Timore Boi further called on government to consider increasing the salary amount that is taxed at zero percent to a minimum of GH¢500.

“We know the minimum wage in Ghana is too small. I believe we can expand the income level at which the zero tax is applied, from GH¢ 365 a month, to around GH¢500. Concerning the taxation of the rich, if you look at every progressive taxation system, you find that the rich pay more. Unfortunately, in Ghana, it is not so. Recently, the maximum marginal rate was taken from 25% to 35%. This was reduced to 30% after public outcry. So the will to tax the rich more seems not to be there,” he told Citi Business News in an interview.

“Currently we are aware that the GRA is designing a measure called the ‘High Net-worth Tax Payers’ which focuses on taxing the wealthy in Ghana. We believe that that may come to resolve the issue of low taxation of the rich," he added.

Source: www.ghanaweb.com
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