Parliament passes four tax arrangements on government policy
| Updated Jul 30, 2018 at 7:06am
Parliament has passed the four tax amendments to reflect the reality of government policy as announced in the Mid-Year Budget Review.
The Bills are the Ghana Education Trust Fund (GETFund) Amendment Bill, The National Health Insurance Levy (NHIL) Amendment Bill, The Income Tax Amendment Bill and the Value Added Tax Amendment Bill.
A final Bill, the Luxury Vehicle Levy Bill, was also passed on Saturday.
During the Mid Year Budget review, the government announced the separation of the Health Insurance Fund Levy and the GETFund component from the Value Added Tax (VAT).
These two components will now have straight levies of 2.5 percent.
The Minister if Finance, Ken Ofori-Atta announced that the applicable VAT rate would be 12.5 percent.He has explained that government is consolidating contributions to the Health Insurance Fund Levy and the GETFund portion of the VAT into a separate Health and Education Levy.
He has further noted that this is to enable the Government to isolate and increase the budget for health and education.