Skilled providers agency, PwC, is casting doubt over whether or not the federal government would obtain its income goal from oblique taxes in 2025.
Regardless of a 6.50% shortfall in income from oblique taxes in 2024, the federal government is searching for a 24% improve in 2025 to GH¢99.77 billion.
In keeping with PwC, reaching this goal together with the Worth Added Tax (VAT) and import tax reforms and the elimination of sure levies would require substantial enforcement measures to generate the required income and deal with financial challenges.
It due to this fact proposed measures essential to reaching that.
Motorcar insurance coverage in Ghana was exempted from VAT in 2017 to boost nuisance taxes, however in 2024, the federal government reintroduced VAT on non-life insurance coverage insurance policies, together with motorized vehicle insurance coverage.
PwC stated increasing the record of exempted uncooked supplies and imported important medicines is prone to be effectively obtained by the pharmaceutical trade shoppers and suppliers, because it might improve entry to important medicine at extra inexpensive costs.
It additionally added that exempting uncooked supplies and important medicines from VAT is justified as it’ll enhance entry to important providers and aligns with the United Nations Sustainable Growth Targets.
On the VAT reform, it identified that these reforms goal to handle inefficiencies and scale back the tax burden on companies and households.
On abolishing the Digital Transaction Levy, PwC stated although the levy goals to ease the monetary burden on customers of digital switch modes and promote the expansion of economic providers, there are considerations that the alternate measures akin to VAT on prices couldn’t have decreased the associated fee impression on digital transactions.
It added that it is going to be fascinating to see how this elimination impacts the monetary providers sector, together with fintech and cell cash.
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