2023 Budget Highlights 2023 Budget Highlights
Our Point of View
The implementation of a minimum chargeable income system will ensure contribution of corporate tax by all corporate entities. Government, must however, consider exemptions and reliefs for some categories of businesses, for instance start ups could be exempted in the first three to fours years of operation. This is to ensure that new businesses are not unduly exposed to higher tax burdens at the investment phase. Broadening the scope of the NSFL to include all businesses has the potential of enhancing government tax revenue. However, businesses with stability clauses and modified tax agreements may not be impacted as they are protected from new tax in their agreements. It is evident that by this introduction, effective corporate tax rate would increase from about 27% to 36%. Does this make Ghana competitive in the sub region and what would be signal to the investment community?
2023 Budget Highlights
Countries around the world indeed are experiencing challenging times and Ghana is no exception. Global economic activity in 2022 has experienced major disruption due to four broad based factors: geopolitical tensions, cost of living crisis, tightening financial conditions, and medium term impacts of the COVID 19 pandemic. As a country that is susceptible to external shocks, the spillover effect of these factors in addition to our domestic problems have exacerbated our economic challenges.
In the midst of the current challenges, government is considering a number of policy options to restore confidence in the economy, reduce the rising debt levels and boost economic activity.
On 24 November 2022, the Minister for Finance, Hon. Ken Ofori Atta presented the Budget
Statement and Economic Policy (the budget) under the theme, “ Restoring and Sustaining Macroeconomic Stability and Resilience through Inclusive Growth & Value Addition to Parliament on behalf of His Excellency Nana Addo Dankwa Akufo Addo.
