The new tax is to replace the repealed Internal Revenue Act, (Act 592) which took effect on 1st January, 2016.

wpid-tax.jpgPer that law, all interest paid to an individual is to attract 1 percent tax meaning interest accrued on treasury bills, fixed income deposit, interest from banks among others will attract a tax of 1 percent.

Notwithstanding, the imposition of the tax has been criticized by majority of Ghanaians while players in the investment sector have also warned  that the move could have dire consequences on interest in the industry.

However, the ministry of finance in a statement said, the tax will be reversed.

According to the statement from the ministry, ‘government has already submitted proposals to Parliament to reverse the position’.

The Minister of Finance, Seth Tekper also said  ‘it is important to draw the attention of the general public to the objectives and significant benefits of the Act which are to revise and consolidate the laws relating to income tax after fifteen years of operation of the Internal Revenue Act, 2000 (Act 592). ”

This review, he averred, included consolidating the general fiscal regime, Minerals and Mining Income Tax, Petroleum Operations Tax, and the taxation of entities such as Public, Mutual, and Non-Profit Causes’.

Source: Newsghana.com.gh

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