The 2022 Ghana Budget — Fiscal Highlights

The 2022 Ghana Budget — Fiscal Highlights

On 30 November 2021, Ghana’s parliament approved the proposed 2022 budget. The 2022 Budget was presented by Ghana’s Minister of Finance and Economic Planning on 17 November 2021.

This year’s budget theme was “Building a sustainable entrepreneurial nation: Fiscal consolidation and job creation.”


The fiscal highlights are as follows:


Electronic Levy


The 2022 Budget proposes to introduce a 1.75% electronic transaction levy on the value of digital transactions.

According to the Budget proposal, it seems that this levy will apply to money payments, bank transfers, merchant payments and inward remittances.

There will be an exemption for transactions of up to GHS 100 or less per day (which is approximately GHS 3000 per month).

This measure will be effective from 1 January 2022.

Although there has been much debate around this levy, it should be noted that on 30 November 2021, Ghana’s parliament approved of the 2022 Budget proposal unchanged.


VAT Flat Rate Scheme


It was proposed that instead of a flat rate scheme, the standard VAT rate will be applicable for wholesalers or retailers.

The 3% VAT Flat rate scheme will only be applicable for retailers with a turnover between GHS 200,000 and GHS 500,000.

Currently, the standard VAT rate is 12.5%.


WHT on sale of unprocessed gold


It has been proposed to decrease the withholding tax on the sale of unprocessed gold. There will be a 1.5% decrease and the new rate will be 1.5%.

This measure will be effective from 1 January 2022.


Simplified tax compliance system


It was proposed that a simplified tax compliance system be set up to provide for basic record keeping. This system will be available for self-employed individual subject to the 3% presumptive tax.

It was also mentioned that the Ghanian government will consider increasing the revenue threshold from GHS200,000 to GHS500,000. However this remains to be confirmed.


Extension of deadline for VAT relief


Local textile manufacturers have been granted an additional 2 years during which they will be eligible to VAT relief.

The VAT relief has been extended from 31 December 2021 to 31 December 2023.


Double Taxation Agreement review


The 2022 Budget also provided that the Ghanian government will be reviewing and updating all of its double taxation agreements in a view to align them with international standards.


Creation of a Unified Common Platform


It was proposed to create a unified common platform. This unified common platform would be a tool for property rate administration.

The unified common platform would be administered by the Ghana Revenue Authority, and it would simplify the collection of property rates for metropolitan, municipal and district assemblies.

This measure will be effective from 1 January 2022.


Customs – Self-clearance system for individuals


A new self-clearance system will be introduced so that individuals can make direct applications for clearance of imports without having to rely on or utilize a customs agent.


Removal of tolls charges


It was proposed to remove all toll charges on public roads and bridges.



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