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Ghana's Domestic Tax Breakdown 2022: An Insight into Goods and Services Taxation

Overview:

Dive deep into Ghana's 2022 fiscal data, exploring the significant tax streams on domestic goods and services. Understand how VAT, excises, and various levies contribute to the national revenue.

Breakdown of Taxes on Domestic Goods and Services Jan – Dec 2022 (GHS Billions)
Breakdown of Taxes on Domestic Goods and Services Jan – Dec 2022 (GHS Billions)

Introduction:


2022 was a transformative year for Ghana in terms of domestic goods and services taxation. With the economy navigating unprecedented global challenges, understanding the breakdown of tax collection becomes essential. This article sheds light on how different domestic tax categories contributed to Ghana's national revenue in 2022.


Ghana's Domestic Tax Landscape in 2022:


Value Added Tax (VAT): The leading contributor to the national coffer, VAT brought in a whopping 15.95 billion GHS in 2022. This indirect tax is applied to the consumption of goods and services and serves as a significant revenue source for many governments worldwide.


Excises: Ranking second in the list, excises contributed 5.02 billion GHS to Ghana's economy. Excise duty is tax imposed on the manufacture, sale or consumption of some selected products such as alcoholic drinks, tobacco products and petroleum products. It is also imposed on imported products to compensate for the internal levy on goods of like nature. Excise duty is a single stage tax and it is paid once either by the manufacturer or importer when the goods are removed, loaded onto a conveyance at the factory gate in Ghana or at the point of entry.


GETFund and National Health Insurance Levies: Both the GETFund Levy and the National Health Insurance Levy had equal contributions of 3.78 billion GHS each. The GETFund Levy supports education infrastructure, while the National Health Insurance Levy ensures that medical services remain accessible to the Ghanaian populace.


Covid-19 Health Levy: Given the global health crisis, the introduction of the Covid-19 Health Levy was a pivotal move. In 2022, this levy generated 1.56 billion GHS, funds presumably allocated to manage and mitigate the effects of the pandemic.


Communication and E-Transaction Taxes: With the digital age in full swing, taxes like the Communication Service Tax (0.59 billion GHS) and E-Transaction Levy (0.71 billion GHS) signify the country's efforts to tap into the burgeoning digital economy.


Conclusion:


Ghana's 2022 fiscal landscape paints a picture of a nation adaptive to global economic shifts. The diverse tax streams, from traditional VATs and excises to more contemporary levies, showcase Ghana's proactive approach to revenue generation. As we move forward, it will be intriguing to see how these numbers evolve and what new tax initiatives might emerge.


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