Ghana plans to fix its messy tax system this year. Finance Minister Dr Cassiel Ato Forson told Parliament that the current setup hurts businesses and families. The actual tax rate equals about 22 percent when you add everything up. This includes the main 15 percent plus extra charges for education, health insurance, and COVID relief.
The minister explained these problems during his budget speech on March 11. Companies face extra hardship because they cannot recover costs from these additional charges. The government asked the International Monetary Fund for help sorting out this complicated system. Experts from the IMF will visit Ghana next month to analyze the situation.
Dr. Forson plans to create a special team to fix these tax issues. Before making changes, they will talk with business leaders and other important groups. The government wants to drop the COVID-19 tax completely. They also plan to simplify how education and health taxes work with the main system.
The reforms aim to lower overall tax rates for homes and companies. Small businesses would pay less under the new rules. Officials want to help people understand tax rules better through education programs. Many business owners previously complained about Ghana's complicated tax structure. Some asked for targeted breaks to help key industries create jobs; others wanted clearer systems that collect money fairly.
The minister explained these problems during his budget speech on March 11. Companies face extra hardship because they cannot recover costs from these additional charges. The government asked the International Monetary Fund for help sorting out this complicated system. Experts from the IMF will visit Ghana next month to analyze the situation.
Dr. Forson plans to create a special team to fix these tax issues. Before making changes, they will talk with business leaders and other important groups. The government wants to drop the COVID-19 tax completely. They also plan to simplify how education and health taxes work with the main system.
The reforms aim to lower overall tax rates for homes and companies. Small businesses would pay less under the new rules. Officials want to help people understand tax rules better through education programs. Many business owners previously complained about Ghana's complicated tax structure. Some asked for targeted breaks to help key industries create jobs; others wanted clearer systems that collect money fairly.
