The Institute of Statistical, Social, and Economic Research (ISSER) is advocating for a moratorium on the granting of new tax breaks to overseas businesses.
ISSER also recommended reviewing the tax breaks for free zones and the extractive industry in its fiscal policy recommendations to the government for the 2024 budget.
Studies show that Ghana loses over ¢25 billion a year as a result of tax exemptions. Many have been forced to demand that tax breaks for foreign corporations be eliminated as a result of this.
The research organization recommended a reduction in the Electronic Transfer Levy rate from 1.5% to 1% of transaction value and the elimination of the daily threshold in addition to other indirect tax initiatives.
Additionally, it suggested eliminating the benchmark import value reduction on a few imported cars and other items.
Nonetheless, it recommended that the government implement Value Added Tax invoicing for all VAT taxpayers by 2024, reinstate public road tolls on a limited number of routes, and establish a Self Clearance system at the ports for imports.
In addition, ISSER proposed raising the individual marginal income tax rate to 35% and lowering the car benefit ceilings in terms of direct taxes.
In order to apply to all entities, it also suggested changing the name of the National Fiscal Stabilization Levy (NFSL) to the Growth and Sustainability Levy (GSL). By doing this, tax duplication will be prevented.
Regarding spending, ISSER proposes to freeze employment in the public sector, review important government initiatives to ensure they are relevant, efficient, and cost-effective, and integrate the public procurement approval procedures with GIFMIS to guarantee that projects are funded.
It also recommended reviewing the effectiveness of statutory funding and putting government directions on expenditure measures into practice.
In 2023, the government will pay ¥52.5 billion in interest.
The government aimed to raise ¥141.553 billion in income, or 98.3% more, in the 2023 budget.
The government wanted to raise ¢99.639 billion in non-oil tax income. It is anticipated that the oil and gas industry will bring in ¥23.455 billion.
The government anticipates paying salaries and wages totaling ¥45.52 billion. This amounts to 23.8% of the overall spending.
But ¥52.55 billion, or around 27.5% of the total, will be paid back in interest on loans.
This year, 13.9% of total expenditures, or approximately ¥27.63 billion, will go toward capital expenditures.
Source: Marzuuq Issah | Ghana360news.com
