Ghana: Tax measures in 2023 budget

Direct and indirect tax proposals

Direct and indirect tax proposals

The Minister for Finance on 24 November 2022 presented the budget statement and economic policy for 2023.

The budget includes certain direct tax proposals that would:

  • Introduce an additional pay-as-you-earn (PAYE) tax band with a tax rate of 35%
  • Review the upper limits for vehicle element for PAYE purposes
  • Introduce a withholding tax (WHT) regime for gains on realisation of assets and liabilities
  • Review the 15% optional rate for individuals on realisation of assets
  • Increase the existing 1% concessional to 5%
  • Implement a minimum chargeable income system
  • Convert the national fiscal stabilisation levy (NFSL) into a growth and sustainability levy (GSL) to cover all other sectors
  • Unify the existing carry-over of tax loss provisions in the Income Tax Act 896
  • Limit the deductibility of foreign exchange losses to only realised losses, and restrict exchange losses on capital assets to be capitalised other than deducted in the year in which they are incurred
  • Reform taxation of the gaming industry
  • Waive taxes on withdrawals from Tier 3 provident finds and personal pension schemes for persons who have permanently lost their jobs or capital due to the current economic crisis
  • Review the vehicle income tax sticker and income tax stamp rates in 2023

Indirect tax proposals would:

  • Increase the value added tax (VAT) rate
  • Review the existing VAT registration threshold under VAT Act 870
  • Reduce the “e-levy” rate from 1.5% to 1%
  • Introduce major reforms in connection with VAT exemptions
  • Rollout electronic VAT invoicing to large taxpayers (including listed companies)
  • Implement Customs Tariff with the 2022 version of the Harmonised Commodity Description and Coding System (HS Code) to enhance uniformity of trade within the region
  • Revise the taxation of cigarettes and tobacco products to align with Economic Community of West African States (ECOWAS) protocols
  • Introduce excise tax on products such as electronic smoking devices and liquids
  • Increase excise tax rate for spirits above that of beer
  • Withdraw the existing benchmark discount policy on imported goods in 2023
  • Implement the excise tax stamp on textiles by end of first quarter 2023

Read a November 2022 report [PDF 2.3 MB] (51 pages) prepared by the KPMG member firm in Ghana


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.