{"id":1257406,"date":"2022-11-24T15:24:22","date_gmt":"2022-11-24T15:24:22","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/11\/24\/1-1-budget-govt-reduces-e-levy-and-increases-vat\/"},"modified":"2022-11-24T15:24:22","modified_gmt":"2022-11-24T15:24:22","slug":"1-1-budget-govt-reduces-e-levy-and-increases-vat","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/11\/24\/1-1-budget-govt-reduces-e-levy-and-increases-vat\/","title":{"rendered":"+1,-1 Budget: Gov’t Reduces E-Levy And Increases VAT"},"content":{"rendered":"

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\n\"Ofori-Atta\n<\/p>\n

\nThe government is expected to reduce the e-levy rate from 1.5% to 1%.<\/span>\n<\/p>\n

\nIn the 2023 budget statement, the Finance Minister said the review of the act is to “aggressively mobilize domestic revenue” and is a part of the seven-point agenda aimed at restoring macroeconomic stability and accelerating our economic transformation.<\/span>\n<\/p>\n

\nHe believes this will lessen the economic hardships Ghanaians are facing in the country.<\/span>\n<\/p>\n

\nKen Ofori-Atta admitted that the e-levy did not yield the results they expected.<\/span>\n<\/p>\n

\nThe e-levy rate pegged at 1.75% initially was reduced to 1.5% after Ghanaians protested against it.<\/span>\n<\/p>\n

\nHe also disclosed that the government got several proposals to review the e-levy, and is working closely with all stakeholders to evaluate the impact of the e-levy. He said these could include the revision of the various exclusions.<\/span>\n<\/p>\n

\n\u201cAs a first step, however, the headline rate will be reduced to one per cent of the transaction value alongside the removal of the daily threshold,\u201d the Finance Minister stated.<\/span>\n<\/p>\n

\nThe government reduced expectations for revenue collection from the e-levy after an initial projection of GHS 7 billion and reduced more to GHS 611 million in July 2022.<\/span>\n<\/p>\n

\nThe general public and the Minority opposed the implementation of the e-levy when the Finance Minister announced it. It took Parliament so long to pass the e-levy bill since the debate over its passage went on for four months but got implemented in May 2022.<\/span>\n<\/p>\n

\nMeanwhile, he mentioned that the government wishes to increase VAT by 2.5% in 2023. This increased rate forms part of the seven-point agenda to revive Ghana’s economy.<\/span>\n<\/p>\n

\nThe VAT rate is to increase from 12.5% to 15%, and it is to directly support road construction projects and the digitization agenda.<\/span>\n<\/p>\n

\nKen Ofori-Atta announced this while presenting the 2023 budget statement on Thursday, November 24, 2022.<\/span>\n<\/p>\n

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\nGhanaians
\nKen Ofori-Atta
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The government is expected to reduce the e-levy rate from 1.5% to 1%. In the 2023 budget statement, the Finance Minister said the review of the act is to “aggressively mobilize domestic revenue” and is a part of the seven-point agenda aimed at restoring macroeconomic stability and accelerating our economic transformation. He believes this will […]<\/p>\n","protected":false},"author":1,"featured_media":1257407,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[4586,2099,225,1320,6175,4536],"class_list":["post-1257406","post","type-post","status-publish","format-standard","has-post-thumbnail","category-top-stories","tag-budget","tag-elevy","tag-govt","tag-increases","tag-reduces","tag-vat"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1257406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1257406"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1257406\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1257406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1257406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1257406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}