Business News Wed, 15 Nov 2017

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2018 Budget: Tax on 'minimum wage earnings' abolished

The government of Ghana has abolished income tax for Ghanaians whose incomes are equivalent to the minimum wage.

Government is embarking on the move to protect low-income earners and ensure fairness in the country’s income tax administration.

This was announced by Finance Minister Ken Ofori-Atta as he presented the 2018 Budget and Economic Policy Statement to parliament on Wednesday, 15 November under the theme: “Putting Ghana Back to Work”.

He said: “Government will review the current income tax thresholds by pegging the tax-free threshold to the current minimum wage”, which, in effect, is an abolishment of “tax on the incomes of minimum wage earners”.

In addition, the ongoing reforms in the lotteries industry will continue, and the measures against illegal lottery business intensified.

“To remove the incentives for people to engage in illegal lottery, the 7.5% income tax on the commission of lotto marketing companies will be abolished and the 5% withholding tax on lotto prizes removed,” he further explained.

Tax amnesty has also been promised to individuals who register and file returns within a certain period.

“In 2018, parliamentary approval will be sought to exempt taxpayers who register and file returns within a targeted period from paying penalties and interests for late or non-submission of returns and late payments. This includes exemption from prosecution,” he explained.

He indicated that the Ghana Revenue Authority (GRA) will, after the amnesty period, “wage an intense campaign to prosecute continuing defaulters and offenders”.

Source: Class FM

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