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29.11.2011 Business & Finance

Proper taxation and Payment of taxes would move Ghana away from Donor funding

By GNA
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Accra, Nov 22, GNA - Mr Edward Larbi Siaw, said on Monday said if all Ghanaians would take pride in themselves and pay taxes the issue of donor funding would be a thing of the past.

He said “in Africa we are wealthy and if we tax ourselves properly and pay taxes we not have anything doing with funding from other countries and institutions.

Mr Larbi expressed the view that it became mandatory for government to impose an income tax threshold of 1,440 for the year 2012 because Parliament did not pass the new minimum rate on personal income tax threshold of 1200 proposed and for two years the old threshold of 1008 is what was being applied.

He was speaking at a post budget workshop organized by the Ministry of Finance for Parliamentary Press Corps in Accra. Topics discussed include: Overview of Budget Statement and Policy Initiative, Macro Economic Framework, Tax Policy Measures, Oil and Gas Issues and Sectoral Section.

The theme for this years' budget is: “Infrastructure Development for Accelerated Growth and Job Creation.”

Mr. Larbi said the path government had taken with its tax policy and government policy was a very consistent one, adding all taxations emanate from Parliament and government being social democrat does not take delight in over taxing the citizens.

He said however stated that it is because for two years the new thresh had not been passed and so government decided to therefore added a bit.

He said under the old threshold of 1,440, if an employee's salary was GH 10,000.00 a year, tax level would be 1,489 and under the new system of 1,200 an employee with a salary of 10,000 would be taxed 1,332 for the year.

He expressed the hope that this year the tripartite committee in the Trade Union Congress should arrive at a decision early urging Parliament to pass the minimum rate on personal income tax.

Mr Simon Patrick Kyei, Director for Budget, said the budget highlights the areas hoped to achieve in 2012.

He said for the first time oil was being introduced so the base of the economy was being established and a big jump in GDP was expected, adding however that later in 2012 it will stabilize which presupposes that the pace of growth through infrastructure development has to be quickened.

GNA

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