As part of measures to raise more revenue to meet its revenue target for the 2018 fiscal year, government has revealed that it will introduce a new tax known as the high net worth income tax.
In line with the new tax, the government will charge 35 percent on incomes that are over GHC 10,000.
Presenting the 2018 mid-year budget review on the floor of parliament today, July 19, 2018, the Finance Minister, Ken Ofori-Atta announced that a new band rate needs to be added to Ghana’s current five band graduated income tax rate for individuals.
By this, the government has reclassified workers considered high-income earners.
According to the Finance Minister, the new high net-worth income tax is needed to make the rates charged in the country more equitable.
This, he also added was in line with best practice around the world.
Luxury Vehicle Tax
The Minority in parliament had earlier in the week announced that Government was going to introduce a luxury vehicle levy of 10 percent on vehicles with engine capacities above 3.5 percent.
The Finance Minister confirmed the introduction of a levy on a luxury vehicle with engine capacities of 3.0 liters and above. He however did not confirm the percentage to be charged.
The levy according to the Finance Minister will be paid on first registration, and subsequently during annual renewal.
He added that Commercial vehicles are exempted from this policy.