Ken Ofori-Atta to introduce new taxes in the 2024 budget

Finance Minister Ken Ofori-Atta will on Wednesday present the 2024 budget to Parliament. There are hints that the government is planning to raise GHS11 billion in 2024 through new taxes. There has been regular introduction of new taxes by the government since the NPP came into power in 2017.

MP for Yapei-Kusawgu, John Jinapor revealed that the Finance Minister has planned to introduce the new taxes to raise the amount which is about 1 per cent of GDP.

“We just met the Minister of Finance at the Finance Committee and the minister indicated that he intends to raise an additional GH₵11 billion which is about 1 per cent of GDP but we have told him that we think that the people have been taxed so much so it will be inappropriate to come with new taxes rather the minister should look at cost cutting.”

The former Deputy Energy Minister said the decision would be another heavy load on citizens as the government has already burdened people with numerous taxes.

“I think that it is improper and unacceptable to further come out with new taxes and increase the tax burden on Ghanaians,” he stated.

Ironically, President Akufo-Addo in 2016, then a presidential candidate, and his team campaigned on moving from a tax-burdened economy to a production-powered one when given the nod. But since then a number of taxes have been introduced by the Finance Ministry headed by Ken Ofori-Atta. These include the infamous E-lvey which ensures every Ghanaian who uses mobile money pays tax through mobile money transactions.

Other taxes introduced by the government include the 3 per cent VAT flat rate, the 1 per cent Covid-19 Health Recovery Levy, the 5 per cent Financial Sector Clean-Up Levy (taxed on profits of banks before tax), Energy Sector Recovery Levy (20 pesewas per litre of diesel and petrol and 18 pesewas per kilogram of gas), Sanitation and Pollution Levy (10 pesewas on every litre of diesel and petrol) and withholding taxes on Realization of Assets and Liabilities (3% for residents and 10% for non-residents). Some of the taxes have also been targeted at digital space with a 21% VAT on Facebook advertising imposed in 2023 as well as the 10% withholding tax on betting.