Dr. Ernest Addison, Governor of Bank of Ghana
• The Bank of Ghana has said despite COVID-19, the manufacturing sector has seen major growth
• The central bank reported that the improvement is as a result of indicators such as port activity, private sector contributions, social security, among others
• The latest high frequency indicators recorded broad-based improvement in May 2021 compared to a year ago.
The Bank of Ghana has indicated that the manufacturing sector has witnessed an improvement for the period ending May 2021.
The central bank in its recent overview of Real Sector Development based the growth on trends which included direct taxes and private sector workers’ contributions to the Social Security and National Insurance Trust (SSNIT) Pension Scheme (Tier-1).
“Total Direct Taxes collected increased by 26.8 percent (year-on-year) to GH¢1,466.34 million in May 2021, relative to GH¢1,156.19 million recorded in a similar period in 2020. Cumulatively, total Direct Taxes collected for the first five months of 2021 went up by 32.0 percent to GH¢8,993.23 million,” the Bank of Ghana revealed.
In terms of contributions of the various sub-tax categories, the BoG stated that Income tax (PAYE and self-employed) accounted for 56.3 percent, Corporate tax accounted for 31.7 percent, while “Other Tax Sources” contributed 12.0 percent.
On the other hand, total private sector workers’ contribution to the SSNIT Pension Scheme (Tier-1) increased by 3.9 percent in year-on-year terms to GH¢205.14 million in May 2021, from GH¢197.37 million collected during the corresponding period in 2020.
“In cumulative terms, the contribution for the first five months of 2021 improved by 3.6 percent to GH¢996.96 million.” BoG said.
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