GRA Implements New Tax Reliefs
The Ghana Revenue Authority (“GRA”) has commenced the implementation of six (6) tax reliefs introduced in the 2022 Budget Statement as part of efforts to alleviate the burden of the COVID-19 pandemic and promote job creation.
The reliefs include:
- the exemption of individuals whose annual incomes are up to GH¢4,500 – GH¢375 a month – from paying taxes;
- the suspension of the payment of Vehicle Income Tax (VIT) on selected vehicles, including intracity commercial vehicles (trotros and taxis and intercity/long distance buses;
- a fifty percent (50%) reduction in withholding tax on gold exports by small scale miners;
- the limitation of the application of the flat rate Value Added Tax (VAT) scheme to businesses whose annual turnover is up to GH¢500,000, an increase from the GH¢300,000 threshold for the tax;
- the waiver of interest and penalty on tax arrears for all categories of taxpayers; and
- the exemption of local textile manufacturers from paying VAT.
Through the above reliefs, the GRA expects to raise the market share of domestic manufacturers, increase employment by small and medium sized businesses, and encourage individuals and businesses to fulfill their tax obligations.
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