According to Finance Minister Ken Ofori-Atta, a number of long-term policies aimed at boosting income production and subsequently solidifying fiscal consolidation should pump an estimated GH8billion into the economy next year.
This is 1.35 percent of the updated GDP estimate for 2022 of GH592 billion.
This, according to the minister, is crucial in the country’s effort to “substantially boost revenues” even as macroeconomic conditions in the country remain unfavourable and as talks with the International Monetary Fund (IMF) proceed.
During the introduction of the 2023 Budget Statement on the floor of parliament, Mr. Ofori-Atta stated that “permanent revenue measures with an estimated total yield of 1.35 percent of GDP will be brought to parliament for consideration and approval.”
The most notable change is the Value Added Tax (VAT) rate increase of 20% from 12.5 to 15 percent, which is expected to generate revenue of approximately GH2.7 billion, or nearly 33 percent of the GH8 billion total, with future adjustments to the VAT exemption regime promised.