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Business News of Thursday, 15 November 2018


Proposed Personal Income Tax reviewed downward

Ken Ofori-Atta, Minister of Finance Ken Ofori-Atta, Minister of Finance

Mr. Ken Ofori-Atta, Minister of Finance says government will amend the additional personal income tax band introduced in the mid-year budget to cover monthly income above GH¢20,000.00 at a rate of 30 per cent instead of the earlier GH¢10,000.00 at a rate of 35 per cent.

Speaking during the presentation of the 2019 budget in Parliament on Thursday, he said the proposed review, which will be brought before Parliament for legislation, reflected concerns and feedback received from the public following the announcement of the tax measure in the mid-year budget review.

Concerns raised following this announcement included notably, one from the Trades Union Congress (TUC), which criticized the tax as being too high.
“We have listened to the feedback from the public and come to the conclusion that some relief from this tax measure is justified,” he said.

Per this new proposal, anyone earning monthly incomes of GH¢20,000.00 and above will be required to pay the 30 per cent personal income tax on their incomes. A person earning exactly GH¢20,000.00 for instance, will pay personal income tax of GH¢6000.00.

Mr. Ofori-Atta noted however, that in line with government’s commitment to lighten the tax burden on wage earners at the lower levels of the wage ladder, no income tax will be charged on minimum wage, although recent increases have led to wages around minimum wage levels becoming partly taxable.