Francis Timore Boi, a tax analyst, has urged the government to consider raising the salary amount that is taxed at zero percent to a minimum of GH500.
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Currently, employees earning GH365 or less per month or GH4,380 per year are not taxed.
This is in response to Amendment No. 2 to the Income Tax Act of 2021. (Act 1071).
Speaking to the media on income taxation in Ghana, Francis Timore Boi noted that it was time to increase the amount of tax charged on high-income earners in the country, to allow more low-income earners to be spared.
“We know the minimum wage in Ghana is too small. I believe we can expand the income level at which the zero tax is applied, from GH¢ 365 a month, to around GH¢500. Concerning the taxation of the rich, if you look at every progressive taxation system, you find that the rich pay more. Unfortunately, in Ghana, it is not so. Recently, the maximum marginal rate was taken from 25% to 35%. This was reduced to 30% after public outcry. So the will to tax the rich more seems not to be there.”
“Currently we are aware that the GRA is designing a measure called the ‘High Net-worth Tax Payers’ which focuses on taxing the wealthy in Ghana. We believe that, that may come to resolve the issue of low taxation of the rich,” he added.
