|Ghana Praised For Strengthening Tax Regime
by Lorys Charalambous, Tax-News.com, Cyprus
Monday, April 17, 2017
In recent years, "pervasive exemptions and [a] lack of compliance" have been major issues for Ghana, but recent initiatives have begun to correct these issues, according to the International Monetary Fund.
Ghana last month announced a series of tax measures to tackle its budget deficit. The Budget announced the repeal of the one percent Special Import Levy; the 17.5 percent VAT on financial services, selected imported medicines that are not produced locally, and domestic airline tickets; the five percent VAT on real estate sales; and the excise duty on petroleum. In addition, to simplify compliance, a flat-rate VAT of three percent is being offered to traders.
In addition, the Budget provided for a comprehensive review of import duty exemptions and tax reliefs, including the duties and taxes payable by both domestic and foreign companies, suppliers, and contractors, and their employees. As a transitional arrangement, all applicants for exemptions and tax reliefs will be required to pay due taxes in full, before then applying for refunds.