Ghana Implements Significant Tax Law Amendments - Introduction
Ghana has embarked on a comprehensive overhaul of its tax regime with a series of amendments aimed at fostering economic development, supporting local industries, and promoting environmental sustainability. These changes, spanning from income tax adjustments to the introduction of an emissions levy, reflect the government's commitment to creating a conducive environment for businesses and individuals alike.Changes in Income Tax
An important change under the Income Tax, 2015 (Act 896) is the revision of the annual graduated tax scale for resident individuals. The tax-free threshold has been elevated from GH¢4,824.00 to GH¢5,880.00, providing a slight relief to the tax burden on individuals and potentially increasing disposable income for households.Value Added Tax (VAT) Act Enhancements
The amendments to the VAT Act are particularly notable for their emphasis on supporting local manufacturing and sustainable transportation solutions. Key highlights include:- Extending a zero-tax rate to the supply of locally manufactured textiles and vehicles for an additional two years.
- Introducing a zero-tax rate for locally produced sanitary towels, addressing both economic and social welfare issues.
- Waiving VAT on the importation of electric vehicles designated for public transportation, aligning with global environmental conservation efforts.
- Implementing a flat rate for the rental of commercial premises and the sale of immovable property by estate developers, aiming to simplify tax calculations and compliance.