GHANA 2017/18 BUDGET STATEMENT
The Minister of Finance, Ken Ofori-Atta, presented the Budget Statement and Economic Policy of The Government of Ghana for the 2018 Financial Year to the parliament on 15 November 2017.
Highlights of the budget speech summarized:
- The overall GDP growth is estimated at 7.9% at the end of 2017, up from the original forecast of 6.3%
- The overall budget deficit on cash basis was 4.5% of GDP in September 2017 against a target of 4.8% of GDP
- Inflation was 11.6% at the end of October 2017, compared to 15.4% at the end December 2016
- The implementation of the National Identification Scheme, the National Digital Addressing System, Tax Identification Number System and implementation of the presumptive tax system to broaden the tax base to include more taxpayers.
- Through a National Entrepreneurship and Innovation Plan, Government will provide a holiday tax period to start-ups or early stage businesses of Ghanaian entrepreneurs who are 35 years or younger.
- Government will introduce Voluntary Disclosure Procedures (VDP) in the Revenue Administration Act, 2016 (Act 915) to waive penalties on voluntary disclosures and payment of unreported and understated taxes by taxpayers. However, taxpayers will be required to arrange to pay such taxes within a period agreed with the Commissioner-General of GRA.
- Reviewing of the current income tax thresholds by pegging the tax-free threshold to the current minimum wage to protect low-income earners and ensure fairness in the income tax administration. Government intends to increase the monthly tax-free chargeable amount from GH¢216.00 to about GH¢261.36 for tax resident individuals.
- As from January 2018 the minimum wage will be GH¢9.68 per day after the most recent increase in July 2017.
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