Finance

Government withdraws Tax Exemptions Bills from Parliament

Government has withdrawn the Tax Exemptions Bill 2021, which seeks to prevent a significant loss of government revenue from Parliament.

This is after Deputy Finance Minister John Kuma has sought the leave of the House to withdraw the bill and to re-laid it later in the House.

The Exemptions Bill was laid in Parliament on November 16, 2021, and referred to the Finance Committee of Parliament for consideration.

The Exemptions Bill when passed, is expected to make substantial savings for the Government of Ghana.

For years, experts have attempted to quantify the losses and the depletion of the state coffers occasioned by the unbridled grant of tax waivers.

Moreover, the government itself has estimated that the Exemptions Bill when passed, stands to save GH¢500 million of revenue that otherwise would be lost to tax exemptions in 2019.

This amount is more than the yield of the tax increases that were announced.

“Failure to take action on exemptions is therefore costing the nation dearly and prompting the resort to tax hikes to plug revenue shortfalls,” Mr Kuma said, adding that, the Government also cited for example that in 2011, tax exemptions/tax expenditures cost the nation 6.13 per cent of Gross Domestic Product (GDP), translating in US$ 2.4 billion.

In 2013, Ghana lost 5.2 per cent of its GDP to tax expenditures amounting to USD$ 2.5 billion, according to the International Monetary Fund.

 

Source: GNA

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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