The Minister of Finance has met with a section of the Clergy to move the conversation forward. The nation would need a Charities Bill to help guide the faith-based tax. This is the most recent development with the idea of churches paying tax. The consideration has been in existence for ages. To tax or not to tax churches.
The Honourable Minister has made mention of this in several instances and has not hidden his desire to see faith-based taxed. He sees it as a means to reach about 70% of the population. Howbeit, there are no guidelines to execute. The Minister has called for clarity in the implementation of the faith-based taxing system. Thus the government and a section of Christian leaders have signed a Memorandum of Understanding (MOU) for work to begin on a Charities Bill. The Charities Bill among other things would bring clarity to things like businesses churches can do and how the taxing would be applied. This is targeted to take effect in as early as 2020.
REV. DR FRIMPONG MANSO
In a statement made by Dr. Frimpong Manso in 2008, intimated that churches already pay taxes. However, if the government wants to now tax institutions that live on charitable donations that is another thing altogether. He alerted the fact that, such a law should be applicable to other faiths.
The idea has gained more traction due to the consistent failure to achieve targeted revenues and high percentage of Ghanaians who don’t pay taxes. It is estimated that only 2% of the 70% informal sector economy pay taxes. Tax revenues had to be revised downwards by 7.4% for 2019 due to failure of the government to meet revenue targets. The Charities Bill when instituted would apply to Christian and non-christian organisations alike.