On March 31, 2023, Parliament passed three new tax measures that were met with opposition from the Minority Caucus but were ultimately approved by the Majority. These taxes include the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, and the Income Tax Amendment Bill 2022. The government has presented these bills as part of its plans to generate around 4 billion Ghana Cedis in domestic revenue mobilization annually.
These taxes are crucial for Ghana to secure Board Approval for the US$3 billion International Monetary Fund (IMF) Programme, which was agreed upon after a staff-level agreement was reached late last year. In order to meet the IMF’s criteria to qualify for a bailout, the government has completed various measures, including tariff adjustments by the Public Utilities Regulatory Commission (PURC), publication of the Auditor-General’s Report on COVID-19 spending, and onboarding of Ghana Education Trust Fund (GETFund), District Assemblies Common Fund (DACF), and Road Fund on Ghana integrated financial management information system (GIFMIS).
The government has justified the introduction of these taxes as necessary to aid in the recovery from the current economic crisis. These measures will help to increase revenue and support government programs and initiatives aimed at boosting economic growth and sustainability. While these new taxes may be met with resistance from some groups, they are seen as a necessary step in Ghana’s path towards economic recovery and stability