The Government of Ghana has reviewed the 35% Personal Income Tax Band imposed on the citizens who earn GHS10, 000.
The Finance Minister Ken Ofori Atta on Thursday, 19 July, 2018 during the presentation of the mid-year budget review disclosed the 35% Personal Income Tax Band. He said government has reviewed the personal income tax categories “to include an additional band of GHS10, 000 and above per month at a rate of 35%”.
However, presenting the 2019 budget in Parliament on Thursday, November 15, 2018, Ken Ofori Atta said after they introduced the 35% Personal Income Tax Band in July, “We have listened to the feedback from the public and come to the conclusion that some relief from this tax measure is justified.
Accordingly, the Government proposes to review this band to impact monthly income above GH¢20, 000 at a rate of 30percent.”
This means Ghanaian citizens who earn GHS 20,000 and above will be required to pay 30% Personal Income Tax. Thus if you earn GHS 20,000 will be expected by pay 30% which is GHS 6000 as Personal Income Tax.
He added that, “In view of the recent wage increases, wages around minimum wage levels have become partly taxable. In keeping with government commitment to lighten the tax burden of wage earners at the lower levels of the wage ladder, minimum wage will attract no income tax”.
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