Consumer spending shows strong positive performance as of March 2023 - Report

Consumer spending saw an increase as domestic VAT collections and retail sales record a substantive increase as of March 2023.

According to the Bank of Ghana’s Monetary Policy Report for May 2023, domestic VAT collections increased by 92.4 percent on a year-on-year basis to GH¢1,250.68 million, from GH¢649.93 million.

Cumulatively, total domestic VAT for the first quarter of 2023 went up by 76.8 percent to GH¢3,196.30 million compared to GH¢1,808.04 million for the corresponding period of last year.

Retail sales, on the other hand, increased by 44.9 percent (year-on-year) to GH¢165.20 million in March 2023, up from the GH¢114.05 million recorded in the same period in 2022.

On a month-on-month basis, retail sales improved by 19.2 percent in March 2023 from GH¢138.60 million in the preceding month. In cumulative terms, retail sales for the first quarter of 2023 went up by 30.3 percent.

The report also stated that activities in the manufacturing sub-sector improved in March 2023.

This was evaluated by trends in the collection of direct taxes and private sector workers’ contributions to the Social Security and National Insurance Trust (SSNIT) Pension Scheme (Tier-1).

“Total direct taxes collected increased by 37.7 percent (year-on-year) to GH¢4,788.55 million in March 2023, relative to GH¢3,478.67 million recorded in the same period in 2022,” the report noted.

The BoG noted that cumulatively, total direct taxes collected for the first quarter of 2023 went up by 65.0 percent to GH¢10,773.16 million, from GH¢6,529.91 million for the same period in 2022.

Also, in terms of contributions of the various sub-tax categories, corporate tax accounted for 59.9 percent, Income tax (PAYE and Self-employed) accounted for 27.6 percent, “Other Tax Sources” contributed 12.5 percent.

Total private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) increased by 22.7 percent in year-on-year terms to GH¢317.61 million in March 2023, from GH¢258.80 million collected during the corresponding period in 2022.

Cumulatively, for the first quarter of 2023, the contribution grew by 23.7 percent to GH¢906.95 million, relative to GH¢733.45 million recorded in the same period in 2022, the BoG stated.

SSD/FNOQ

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