Gov’t imposes 30% tax on income earners above GHC20,000

As part of measures to raise more revenue to meet its revenue target for the 2019 fiscal year, government has reviewed upwards the high net worth income tax imposing 30% tax on income earners above GHC20,000.

Government in the mid-year review in 2018 introduced an additional personal income tax band of GH¢10,000 and above per month at a rate of 35 percent.

But the Finance Minister, Ken Ofori Atta while presenting the 2019 Budget in Parliament on Thursday revealed that the Akufo Addo administration having heard the concerns of Ghanaians, made the latest move.

“We have listened to the feedback from the public and come to the conclusion that some relief from this tax measure is justified. Accordingly, Government proposes to review this band to impact monthly income above GH¢20,000 at a rate of 30 percent. Mr. Speaker, we will bring the necessary changes to this august house to be legislated.

“Relief from Tax for Minimum Wage Earners: In view of the recent wage increases, wages around minimum wage levels have become partly taxable. In keeping with government commitment to lighten the tax burden of wage earners at the lower levels of the wage ladder, minimum wage will attract no income tax.” Hon. Ken Ofori Atta noted.