This will raise tax revenue ratio to gross domestic product (GDP) from 16.7% in 2011 to 18% in 2012, according to a supplementary budget presented by Finance Minister Dr Kwabena Duffuor in Parliament yesterday July 18, 2012.
“Due largely to improvements in tax administration, including strengthened customs administration and streamlining of tax exemptions, tax revenue is expected to yield additional GH¢339.2 million
during the year,” said Dr Duffuor.
According to the Minister, the expected additional tax revenue follows the changes to the tax regime for mining.
Corporate tax on mining was increased from 25% to 35% in the 2012 Budget read in November 2011, and also a uniform regime for capital allowance of 20% for five years was also announced. “These measures are expected to generate additional revenue of GH¢175.0 million,” Duffuor stated.
Personal income tax is expected to yield GH¢69 million more than what was estimated in the 2012 budget as self-employed tax revenue is seen falling by GH¢27 million.
Dr Duffuor said import Valued Added Tax (VAT) revenue had been revised upwards by GH¢105.5 million and indicated revenue from domestic VAT was expected to fall by GH¢107 million.
Fees and other charges related to the granting of stability agreements with miners are expected to generate some GH¢525 million as revenue to the government, Duffour indicated.
Government said it was optimistic that all tax collection targets are likely to be exceeded.
Source Ghana Business News