Checkout Specific And Exact Number Of Taxes Akufo-Addo Government Has Abolished Or Reduced

The recent passing of three revenue bills by Parliament has sparked debate on the magnitude of taxes being imposed by the NPP government.

Some have even gone to the extent of accusing the NPP of reneging on its promise recalling how t to lessen the tax burden on Ghanaians and businesses by abolishing some taxes the then NDC government introduced, which it described as “nuisance taxes”.

The accusation is that the NPP has reneged on this promise.

Among these taxes the erstwhile NDC Government introduced were: the 17.5 percent VAT/NHIL on financial services, 17.5 percent VAT/NHIL on imported medicines, 17.5 percent VAT/NHIL on domestic airline tickets, and an increase in the Flat VAT Rate from 3% to 15%.

Indeed in 2016, the NPP stated in its Manifesto the specific taxes it intended to reduce or abolish, including the four listed above.

The big questions are: did the NPP fulfill the promise to abolish these 4 taxes as promised? Did the NPP abolish or reduce a number of other specific taxes it promised to reduce? How tax-friendly has the NPP Government been to Ghanaians and businesses compared to the NDC?

 

 

THE FACTS

The specific and exact number of taxes the NPP Government has abolished or reduced, in fulfillment of its 2016 elections pledge, is a matter of public record.

Documents available, including Parliamentary Hansard, prove the NPP, after assuming power in 2017, fulfilled its promise on Tax abolition and reduction, including the 4 it mentioned against the NDC.

Below are the taxes reduced or abolished under the Akufo-Addo government:

1. Abolished the 17.5% VAT/NHIL on real estates
2. Abolished the 17.5% VAT/NHIL on selected imported medicines, that are not produced locally
3. Abolished the 17.5% VAT/NHIL on financial services
4. Abolished import duty on the importation of spare parts.
5. Abolished 1% special import levy
6. Abolished 17.5% VAT on domestic airline tickets
7. Abolished Levies imposed on Kayayei by local authorities
8. Reduced import duty for some goods and vehicles
9. Abolished excise duty on petroleum
10. Provided full corporate tax deduction for private universities who plough back 100% of profits into the university

11. Reduced National Electrification Scheme Levy from 5% to 3%
12. Reduced Public Lighting Levy from 5% to 2%
13. Reduced special petroleum tax rate from 17.5% to 13% and introduced specific rates
14. Replaced the 17.5 VAT/NHIL rate with a flat rate of 3 % for traders
15. Granted Capital Gains Tax Exemption on stocks traded on the Ghana Stock Exchange or publicly held securities approved by the SEC

16. Abolished the income tax on mutual fund and unit trust schemes
17. Abolished income tax on REIT
18. Reviewing the tax threshold for flat VAT
19. Reduction in withholding tax for gold exporters from 3% to 1%.
20. Removal of VAT on lotto stakes
21. Removal of 7.5% income tax on the commission of lotto agents and tax on lotto winnings

The number of taxes listed as having been reduced or abolished by the AkufoAddo government, is without doubt, the largest rollback of taxes by any government in Ghana.

Interestingly, despite the number of taxes abolished and reduced in 2017, the record showed that revenue collection in nominal cedi terms increased by 25% annually after 2017 until covid-19 hit the economy in 2020.

From the above, the Akufo-Addo Government, clearly has been tax-friendly.

 

 

 

 

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