The Government has reiterated his commitment to democratic process that has a great significance for development of the country by ensuring fairness in the country’s income tax administration.
Ghanaians whose incomes are equivalent to the minimum wage are about to heave a sigh of relief with the government's intention to abolish tax on their incomes.
The Government will review the income tax threshold by “pegging the tax-free threshold to the current minimum wage,” Finance Minister Ken Ofori Atta announced in Parliament as he delivered the budget statement.
The minimum wage currently stands at GHc9.68 cedis, up from GHc 8.80, after the most recent increase in July 2017, set to take effect in January 2018.
He however indicated that the Ghana Revenue Authority (GRA) will, after the amnesty period, “wage an intense campaign to prosecute continuing defaulters and offenders”.
The Minister also mentioned the government's attempts to bolster young entrepreneurs, categorized into ages 35 and below, it will, through the National Entrepreneurship and Innovation Plan grant tax holidays based on the number of persons employed by start-ups or early stage businesses.”
“A preferential tax rate of between 3 to 5 years will be granted after the tax holiday. They will also be allowed to carry forward losses for five years,” the Finance Minister announced.