The Finance Ministry has backed calls by the IMF for an elimination of tax exemptions in the country’s tax laws.
Although the Ministry says a complete elimination may not be possible, it believes the the country must renegotiate some of its tax exemption policies in bid to ensure fiscal consolidation.
Deputy Managing Director of the IMF, Min Zhu last week recommended that Ghana eliminates tax exemption saying it has impacted heavily on the country’s revenue target.
A tax analyst, Abdallah Ali Nakyea in an interview with Citi Business News also cast doubt at a complete elimination.
Head of tax policy unit at the Finance Ministry, Anthony Dzadzra, however tells Citi Business News, the development is as a result of growing concerns which always shoots down government’s efforts at eliminating some tax exemption policies.
“We are also saying that it’s high time we reduce exemptions in Ghana. When we talk about exemptions, we are not talking about only import duties; we are also talking about income tax. So in 592, incomes from interest paid to an individual by a resident financial institution or to an individual on bonds issued by the government of Ghana were exempt,”
“To reduce these exemptions, that is why we placed 1% on interests in this new law (ACT 896). So we really understand what the Managing Director of IMF is saying. As a country, it’s high time we reduce exemptions not only on import duties, but also on income.” Anthony Dzadzra stated.
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By: Pius Amihere Eduku/citibusinessnews.com/Ghana
