Ghana issues Mid-year fiscal policy review of 2022
10 Aug 2022
On 25 July 2022, Mr. Ken Ofori-Atta, the Minister for Finance and Economic Planning of Ghana presented the 2022 Mid-year Budget Review Statement to Parliament. This is in accordance with the provisions of Article 179 (8) of the 1992 Constitution of Ghana, Standing Order 143 of Parliament of Ghana and Section 28 of the Public Financial Management Act, 2016 (Act 921).
The Minister highlighted the following key tax measures to be implemented include:
- The Ghana Revenue Authority (GRA) will implement an eVAT system to improve Value-Added Tax (VAT) collection through electronic means, effective 1 October 2022;
- The Government will assist local governments in assessing and collecting property rates through the GRA;
- Introduction of an upfront payment of VAT on importers not registered for VAT from 1 October 2022. It has been suggested that this may operate as a Withholding VAT;
- The Government will extend the period within which a taxpayer can apply for tax amnesty to 31 December 2022 by passing an amendment to the Penalty and Interest Waiver Act, 2021, Act 1065 (as amended) to provide for the relevant period for the tax arrears and returns to be made up. It is likely the existing relevant period of 31 December 2020 will be maintained; and
- The Government expects an increase in the country’s revenue from the windfall revenues of the Petroleum Sector.
