Tax expert, Dr. Ali Nakyea, has advised the government to start the implementation of computation of the 5.0% levy on profit before tax of banks to the second quarter onwards.
According to him, the Financial Sector Clean-up Levy will have severe implications on the sector, hence his appeal.
Speaking at a programme organized by the Ghana Integrity Initiative on the implications of the tax policies per the 2021 budget on businesses in the phase of the covid-19 pandemic, Dr. Nakyea urged the government to consider his appeal of moving the implementation of the levy forward.
“We have only eight months remaining in 2021, and we are now rolling these taxes, thus, May 2021. So, we’ve lost almost a quarter and that is where I have a challenge with the financial sector recovery levy. Because if you say, you’re starting at the end of the second quarter which is end of June, I wonder if my profit before tax is 100,000 cedis and you’re fining me of 5%, thus 5,000 cedis.”
“I am to pay in quarterly installment but you’re saying, I will start in the first quarter; are you dividng that amount over three quarters or the first quarter is free? It has implications. So because of covid-19, it will be good if you relieve the banks of the first quarter paymet,” he urged.
Assistant Commissioner and Head of Audit at the Ghana Revenue Authority, Dr. Martin Yamborigya also stated that the nation is expected to rake in about GH¢2.9 billion in total revenue by the end of 2021.
According to him, the projected revenue income will be achieved when all new government levies and taxes take effect.
Dr. Yamborigya further revealed that the tax exemptions for commercial vehicles and the suspension of tax stamps will cost the country revenue of about GH¢16.8 million.
“We [GRA] are expecting net revenue of about GH¢2.9 billion as a result of the new tax initiatives that were announced in the 2021 budget.
“In terms of the waiver of taxes with respect to those who operate commercial transport and those who operate with tax stamps, that is expected to cost the government about GH¢16.8 million”, he noted.