Parliament has approved the Income Tax (Amendment) Bill, 2026, which will remove income tax obligations on the National Daily Minimum Wage and introduce changes aimed at making tax compliance easier for micro and small businesses.

The amendment modifies provisions in the Income Tax Act, 2015 (Act 896), including adjustments to personal income tax rates, the exemption of the minimum wage from taxation, and changes to the income limit under the presumptive tax system.

The Bill was presented to Parliament on July 23, 2026, on behalf of the Minister for Finance by the Minister for Roads and Highways, Kwame Governs Agbodza, and was subsequently referred to the Finance Committee for review.

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In its report, the Finance Committee said removing income tax from the National Daily Minimum Wage would help low-income workers retain more of their earnings, as reported by Citi Newsroom.

“The Committee observed that exempting the National Daily Minimum Wage from income tax would provide meaningful tax relief to low-income earners and enhance the progressivity of Ghana’s personal income tax system,” the report stated.

The committee explained that the measure would also prevent workers from being pushed into higher tax brackets due to wage increases and inflation without a corresponding improvement in their purchasing power.

The amendment also raises the income threshold for businesses eligible for the presumptive tax system from GH¢200,000 to GH¢750,000, aligning it with the Value Added Tax (VAT) registration threshold.

The committee said the previous difference between the two thresholds created challenges for tax administration and made compliance more difficult for small businesses.

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It said the adjustment would allow more micro and small enterprises to benefit from the simplified tax system, under which eligible businesses are taxed based on income rather than detailed profit calculations.

The Finance Committee noted that expanding the threshold would reduce compliance costs, encourage more businesses to register with the tax system, and improve overall tax administration.

DR/MA