Ghana to lose GHC6m over 1% tax withdrawal

Ghana is likely to lose over six million Ghana cedis in revenue following the withdrawal of the 1% tax on interest earned on investment.

Chairman of Parliament's Finance Committee James Klutse Avedzi said the ministry will introduce measures in the supplementary budget to address the shortfall.

The Ministry of Finance early this year announced the withdrawal of the one per cent withholding tax imposed on interest earned by individuals on any investments.

The tax imposition on interests is part of provisions in the new Income Tax Act, 2015 (Act 896) which came into force on January 1, 2016.

However, a huge public outcry over the issue after banks and financial institutions sent SMS alerts to their customers about the provision and how it would affect them forced the Finance Ministry to write to Parliament to withdraw the tax.

But Mr. Avedzi, told parliament on Wednesday that investors will still pay for the 1 percent tax until the amendment is legally passed.