The Government is reportedly planning to introduce a new tax, called the Growth and Sustainable Levy, aimed at raising additional tax revenue for the growth and fiscal sustainability of the country.
According to a document sighted by norvanreports, the levy is expected to be imposed on the profit before tax of companies and institutions operating in the country, including firms in the extractive sector, such as mining and upstream oil and gas firms.
The proposed introduction of the Growth and Sustainable Levy is reportedly in response to the negative impact of the Covid-19 pandemic and the ongoing Russian-Ukraine conflict on the country’s finances, which has resulted in reduced revenues and increased expenditure.
The Finance Minister is said to have noted the need to generate additional revenue for the country and believes that the levy will help raise an estimated GHS 2.21bn in 2023 alone.
While the introduction of the Growth and Sustainable Levy could be a viable solution to address the current fiscal challenges in the country, it is worth noting that the levy is subject to review by the Finance Minister in 2025.
This means that the effectiveness of the levy in generating revenue for the country’s growth and sustainability will be evaluated, and adjustments could be made accordingly.
It is also important to note that the implementation of new tax, particularly during times of economic uncertainty, can be a complex and contentious issue.
Companies and institutions affected by the levy may voice concerns over the potential impact on their operations and competitiveness, and it will be important for the government to address these concerns and ensure that the levy is implemented in a fair and transparent manner.
The Growth and Sustainable Levy is just one of the measures being considered by the government to address the economic fallout from the Covid-19 pandemic and other global events.
As the country continues to navigate these challenging times, finding innovative solutions to generate revenue and promote growth will remain a top priority of the government.
Norvan reports