5% levy on profit before tax on banks must be pushed now – Tax Expert

Tax expert, Dr Ali Nakyea, has advised the government to push the computation of the 5 percent levy on profit before tax on banks from the second quarter onwards.

According to him, the financial sector recovery level will have severe implications on the sector hence the appeal.

Speaking at a programme organized by the Ghana Integrity Initiative (GII) on the implications of the tax policy per the 2021 budget on businesses in the face of the COVID-19 pandemic Dr Nakyea appealed to the government to consider the appeal of moving the implementation of the levy forward.

“Because we have only 8 months remaining, we have 8 months and we are even rolling out these taxes next two weeks that is in May, we’ve lost almost a quarter, that is where I have a challenge with the financial sector recovery levy because we you say you are starting at the second quarter which is the end of June, then the third will be the end of September and the fourth is the end of December.

"I wonder if my profit before tax is 100,000 and then I find the 5% so I have 5,000, I am to pay in quarterly instalment but you are saying I will start in the third quarter, are you dividing that amount over the three quarters or my first quarter is free?

"It has implications because of COVID-19, it will be good you relieve me the first quarter and take the three quarter but even that one has not yet been set up so it is a good point we raise,” he said.