2007 Ghana Budget Highlights

2007 Budget Highlights*

*connectedthinking

The 2007 Budget Statement and Economic Policy was delivered to Parliament on Thursday, 16 November 2006 by Hon. Kwadwo Baah-Wiredu, M.P. and Minister of Finance and Economic Planning We outline in this publication the principal matters covered by the Honourable Minister in his address In this Issue:

Overall Summary 2007 Budget: “The Golden Jubilee Budget” but is it golden for the taxpayer? “Focus will be on growth within an environment of economic stability” The Economy For the second time in Ghana, the Budget was read before the beginning of the new fiscal year. The focus of the 2007 Budget is on the following: 

Private Sector Development

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Overall Summary



Human Resource Development



The Economy





Direct Taxation

Good Governance and Civic Responsibility



Value Added Tax



Customs & Excise



Sectoral Outlook

We would point out that changes have been made in prior years to the proposals made in the Budget Statement before the relevant bills have been published and enacted

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2006 Performance

The government has indicated its commitment to Ghana’s obligations under the extended West Africa Monetary Zone Programme (WAMZ) and as such it will support the quoting and trading of national currencies across the WAMZ. The government is also encouraging commercial banks in the country to engage in the trading of these currencies. The government has expressed commitment to the efforts of the Economic Community of West African States (ECOWAS) in having a common external tariff for the region by the end of 2007 but it plans to protect agricultural and industrial sectors against strong competition from imports, in the form of higher tariffs, with the introduction of the ECOWAS Common External Tariff (CET).

Target

Actual (projected) to end of 2006

Real GDP growth

6.0%

6.2%

12-month CPI inflation

7%-9%

10.5% (October)

Gross international reserves

4 Months imports

3.6 Months imports

2007 Fiscal Year Projections:

Domestic primary deficit

1.4% of GDP

2.1% of GDP



GDP growth of at least 6.5%;

Overall budget deficit

2.1% of GDP

4.9% of GDP



Single digit end of period inflation between 7% and 9%;

Domestic Debt-GDP ratio

8.7%

10.1%



Average inflation of 8.8%;

The government’s macroeconomic policies, strategies and targets for 2007 are in line with the macroeconomic framework outlined in the Growth and Poverty Reduction Strategy II (GPRS II).

Ghana Budget Highlights: Overall Summary

Overall Summary 

Accumulation of international reserves to at least three months of import cover;



Domestic primary deficit of 0.6% of GDP; and



An overall budget deficit of 3.2% of GDP.

to the rate of 8%, while that applicable to management and technical fees will be reduced to 15%. During 2007, government plans to develop and implement a system that will enable the government to assess and collect income tax using the value of vehicles registered.

Direct Taxation

The government remains focussed on entering into double tax treaties to eliminate double taxation on incomes earned in Ghana.

To encourage land title registration and investments, a one year interest waiver amnesty has been introduced on rent owed to the government.

Capital gains tax is to be reduced to the rate of 5%.

In addition, land title registration fees will no longer be based on the value of the land but rather at flat rates.

Value Added Tax (VAT)

Various tax reliefs for individuals have been increased. The taxation of accommodation and vehicle benefits in kind has been revised. This revision will decrease the taxable benefit for accommodation but in most cases increase the taxable benefit on vehicles to employees.

In addition to the existing requirement to obtain an income tax clearance certificate (TCC), taxable persons will now be required to obtain a VAT clearance certificate to tender for contracts and to clear goods from the ports. VAT on packaging materials used in the production of drugs for the treatment of HIV/AIDS, tuberculosis and malaria will be removed. All pharmaceutical products will be zero rated.

A Tax Arbitration Board is to be established to spur transparency in tax administration and expedite resolution of appeals.

Customs and Excise

Tax incentives including 10-year tax holidays, exemptions from dividend and capital gains tax have been announced for venture capital finance companies.

To rationalise the indirect tax regime and bring it in line with international trends, excise duties are generally no longer to be calculated on an ad valorem basis. Excise duties on beer, stout, branded spirits, wines, malt drinks, carbonated soft drinks, cigarettes and other tobacco products will be taxed at specific duty rates.

All persons who invest in venture capital finance companies will have their investments deductible for tax purposes.

Government intends to review the current import duty exemption regime to eliminate abuse and to target the productive sectors of the economy.

The National Reconstruction Levy (NRL) is completely abolished with effect from 1 January, 2007.

The withholding tax rates on dividends and rent will be reduced

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Ghana Budget Highlights: Overall Summary

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Overall Summary The concessionary rate on raw material imports has been reduced to 5%.

intends to continue its participation in major international fairs and will embark on a strategy of promoting domestic tourism within the country.

Sectoral Outlook Road Infrastructure Agriculture

The key milestone for the country is to become a transport hub for West Africa. To achieve this, the government will be pursuing a number of measures during the 2007 financial year. Key among these is continuing with the maintenance and completion of ongoing projects as well as initiating new development projects. These developments will largely be financed with the support of the nation’s development partners.

Ministry of Food and Agriculture (MOFA) will focus on the policies and programmes aimed at enhancing agricultural output in order to achieve poverty reduction as well as food security in the country. To ensure the welfare of cocoa farmers, the government has resolved to pay a bonus for cocoa purchases for the 2005/06 main crop season.

To raise additional revenue for road maintenance, the government has proposed an increase in the fuel levy of US$0.02 as well as increases in other road user fees and levies.

The government is also to promote the use of local rice and poultry by all public institutions. Energy

In a bid to enhance transport management, the government will be developing strategies to systemise annual registration of vehicles in the country.

In response to the increasing demand for energy in the country, the government will restore and upgrade various energy generating facilities. The government, in collaboration with its development partners, will initiate new energy generation projects around the country.

Information Communication Technology (ICT)

The Petroleum Exploration law is expected to be reviewed in order to make Ghana an attractive destination for investments in hydro carbon exploration. The government has also reiterated its commitment to fully implement the liberalisation of the downstream sector. In the context of the liberalisation, the private sector will be allowed to import crude oil for refining. Tourism

As part of promoting Ghana as a tourist destination, the government

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During 2006 the telecommunication industry experienced significant growth marked by increased subscriber numbers. The government will focus on developing the legal and regulatory framework for the sector. In addition, it will adopt ICT in its operations in order to promote accountability, transparency and efficiency in its service delivery. Health

The National Health Insurance Fund (NHIF) experienced a growth in its registered members in 2006 and the target is to continue expanding the coverage in 2007. The government will also continue to intensify its

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Overall Summary efforts at improving access to quality and affordable health services to all Ghanaians. To achieve this, the sector ministry and allied agencies are expected to implement programmes that will involve capital investments in the health sector, capacity development through personnel training, promotion of healthy lifestyles, and an increase in funding for the fight against HIV/AIDS, malaria and guinea worm among other common diseases. Good Governance

and establish the Fair Wages Commission which will be tasked with the responsibility of administering the new comprehensive pay structure. New National Passports New passports with enhanced security features that meet the required international standards are to be introduced. Additionally, electronic visa processing systems are to be introduced at the various consulates.

The focus of the good governance strategy under the GPRS II is to empower state and non-state entities to participate in the development process, as well as to promote peace and stability in the country. To achieve this objective, the government will continue to promote effective, responsible, transparent and accountable state machinery. The government will also strive to create an enabling environment for the private sector and continue to support efforts to accelerate growth and reduce poverty.

Ghana Investment Corporation

Diversifying Sources of Funding

Members of parliament are to be allocated ¢51.75 billion from the Heavily Indebted Poor Countries (HIPC) Funds for human development programs in their constituencies.

Based on Ghana’s B+ sovereign rating, the government intends to enter the international capital market as a sovereign borrower to diversify and broaden its funding options whilst requesting access to the International Bank of Reconstruction and Development (IBRD) arm of the World Bank.

The government is to establish the Ghana Investment Corporation which will encourage private sector participation in the financing of infrastructure projects that will have economic returns. This entity is earmarked to acquire shares in international and multinational companies that purchase raw materials from Ghana for processing. Human Capital Development

Towards a Fair Wage The government has indicated its commitment to undertake a holistic public sector wage reform which aims to achieve competitiveness between public sector incomes and those of the private sector. The comprehensive pay reform is expected to be phased in over a three-year period. The new salary scheme will replace the Ghana Universal Salary Structure (GUSS)

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Overall Summary

2007 Budget Highlights* *connectedthinking

The Economy “Focusing on growth within an environment of stability for economic renaissance”

“Golden Jubilee Budget” “Focusing on growth within an environment of economic stability towards economic renaissance” The Economy in 2006

Year end inflation is expected to be 11.2%

Based on the significant improvement in the socio-economic landscape over the past six years, the government is confident that it is on schedule to achieve “Middle Income Status by 2015” target. This confidence is further buoyed by the improvement in the country’s international ratings. The growth in the domestic economy in 2006 corresponds with growth in the world economy.

Driving national development through Private Sector Development Human Resource Development and Good governance and Civic Responsibility.

Overall budget balance in deficit of 4.9% compared to a targeted 4.5% of GDP.

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In spite of challenges posed to most economies by high crude oil prices, consumer spending and government infrastructure financing continued to spur on economies to positive growth. Economies such as, the USA, Japan, China and the Euro Zone contributed significantly to this growth. Low income countries also rode on the back of buoyant prices on the commodities (oil and metals, especially gold) markets to record reasonable growth rates. Ghana, in spite of the slower growth projected for Sub-Saharan Africa, is likely to achieve its key macroeconomic targets for 2006:



Real GDP growth of 6.2% is projected, ahead of the target of 6%. The agriculture sector contributed 35.8% of GDP, the industrial sector 25.4% and the service sector 30.1%;



End year-on-year inflation as measured by changes in CPI was reported at 10.5%. Inflation is expected to end the year at 11.2%;

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The average inflation rate is projected to end the year at 11.8%;

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Gross international reserves are projected to fall from 4 months import cover (2005) to 3.6 months;

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The domestic primary deficit was reported to be 2.1% of GDP (end of September 2006), compared to a target of 1.4%;

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The overall budget balance was in deficit at 4.9% of GDP compared to the year’s target of 4.5% of GDP;

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The average commercial lending rates generally decreased, underpinned by a

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The Economy stable Bank of Ghana (BoG) policy rate. The BoG prime rate was dropped 100 basis points in January 2006 and has since been maintained at that level; and 

As at September 2006, the cedi had remained relatively stable against foreign currencies; it depreciated by 9.5% against the British Pound, 7.8% against the Euro and a moderate 0.9% against the US Dollar.

Total receipts at December 2006 are expected to be covered by total payments of ¢41.4 trillion.

Fiscal Performance

Despite the significant lowering of the Bank of Ghana’s prime rate, Deposit Money Banks did not reciprocate by significantly lowering their lending rates.

Total receipts at the end of September 2006 outperformed the results for the 2005 corresponding period, helped partly by ¢1,826.4 billion Multilateral Debt Relief Initiative (MDRI). Provisional figures for total payments recorded an increase for the first nine months of 35% over the previous year’s corresponding period.

World commodity prices and debt relief under MDRI determine the overall favourable balance of payments projections.

General progress made towards achieving convergence criteria. Appreciably, three out of five WAMZ countries achieved single digit inflation in June 2006.

The overall budget balance out turn was a 4.9% deficit of GDP compared to a 3.8% deficit in 2005. The domestic primary balance worsened, being at 2.1% deficit of GDP compared to a 0.7% surplus of GDP in 2005.

By the end of December 2006, total receipts are projected to be ¢41,357.1 billion of which domestic revenue is expected to be ¢25,421.5 billion with the other significant revenues from grants (¢7,228.6 billion) and loans (¢5,759.3 billion). The total payments for 2006 are projected at ¢41,357.2 billion. This is made up of statutory payments of ¢13,006.5 billion and discretionary payments of ¢28,350.7 billion, both of which represent slight savings in original annual budget estimates.

The year-on-year growth rate of reserve money at the end of September as compared to the same period in 2005 reduced from 19.3% to 16.7%. Fluctuations in the interest rate were quite low. The BoG cut the prime rate by 100 basis points at the start of the year and money market rates declined during most of the year. However, Deposit Money Banks (DMBs) did not change their lending rates significantly over the review period. Credit growth has been strong to date at 31.7%. Outstanding credit (in real terms) increased by 17.4%, with a greater proportion of this growth channelled to the private sector of which the services subsector was the largest beneficiary. Credit to GDP ratio was 20.9% as against 18.6% for the same period in 2005. As at the end of September 2006, the private sector share of credit was 81.6% as against 77.4% for the same period in 2005. Depreciation of the cedi against the country’s major trading partners was well managed. Balance of Payments (BOP) Outlook for 2006 The overall balance of payments is projected to be a surplus of US$178.8 million by the end of the year as compared to the surplus of US$84.34 million in 2005. This healthy surplus expectation is fuelled by anticipation of higher export receipts resulting from strong commodity prices, and debt relief under the MDRI. Developments in the West Africa Monetary Zone (WAMZ)

Monetary Policy The policy implemented by the BoG was targeted at inflation management in the face of rising crude oil prices on the world market.

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This resulted in the inflation rate generally declining over the first three quarters of 2006.

The countries in the WAMZ generally made progress towards achieving the convergence criteria

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The Economy targets. The macroeconomic environment was generally good in the first part of 2006; modest growth was recorded in all countries, with reduced inflation and improved external positions. Three out of the five WAMZ countries (Gambia, Guinea and Nigeria) achieved single digit inflation in June 2006.

Overview of Macroeconomic Framework for 2007

Major Socio-economic Developments in 2006 The Electricity Power Sub-Sector Crisis Electricity sub-sector crisis during the year has caused government to reconsider its energy reference strategy to accommodate a much wider medium-to-long term initiatives

In the short-term government must however steer the course of delivering nonhydroelectric power generation of about 500 megawatts to complement the current inadequate generation capacities.

Medical doctors, nurses, polytechnic teachers, members of the Teachers and Education Workers Union (TEWU), and graduate teachers (NAGRAT) engaged the government at various times over the perceived inadequate salary levels.

Ghana suffered a serious setback in its electricity sub-sector. Low water levels in the Akosombo Dam and high petroleum product prices forced an extensive country-wide load management programme, as the VRA was unable to generate adequate electricity for industrial and domestic use. With some improvement in rainfall patterns, it is likely that water in the Akosombo Dam will rise to 247 ft by the end of 2006. However, the expected 247 feet level, which falls within the period of the dry season, is critically low compared with the mid-point operating level of 259 feet. This level will require VRA to continue to manage electricity supply from its Akosombo plant, at least into the first half of 2007. This situation has caused Government to reconsider its energy reform strategy to address the current crisis and to prevent a recurrence in the medium-to-long term.

GPRS II will continue to provide the guiding framework for 2007. Key macro-economic targets set out in the 2007 budget include: 

Real GDP growth of at least 6.5%;



End of year inflation of between 7% and 9%;

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Average inflation rate of 8.8%;

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Accumulation of international reserves to a target of at least 3 months of import cover;

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Domestic primary deficit of 0.6% of GDP; and



An overall budget deficit of 3.2% of GDP.

To achieve the above targets, the following policies will be applied: 

Prudent fiscal policy management;

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A monetary policy that is flexible enough to respond to external shocks, promote growth and ensure price stability;

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Real interest rates that enhance effective mobilisation of savings and make credits affordable to the private sector; and

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Relatively stable real exchange rates that promote international trade.

Deadlock on Public Wages and Salaries For the first three quarters of 2006, wages and salaries amounted to ¢8,422.5 billion, higher than the budgeted amount of ¢7,588 billion. This is projected to hit ¢10,972.5 billion by the end of 2006, thereby exceeding the budget of ¢9,999 billion. During the year there were a significant number of labour issues involving public sector workers. PricewaterhouseCoopers

Ghana Budget Highlights: The Economy

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The Economy

The macroeconomic environment appears stable with GDP growth at 6.5%. However international reserves, domestic primary surplus and overall budget deficits are projected to deteriorate over the previous year’s targets.

2007 revenue target is 40% higher that 2006 projections.

Capacities of revenue agencies to be enhanced, however there should be better negotiations on project loans to achieve best economic cost.

Furthermore, structural constraints at the policy and institutional levels that impede increased productivity, adoption of technology and competitiveness of the private sector with respect to agriculture, industry and service will be addressed. Resource Mobilisation Total revenue collection for 2007 is projected at ¢54,315.9 billion, of which domestic revenue is projected at ¢37,532.2 billion. The tax revenue agencies are expected to collect ¢32,533.1 billion, which is equivalent to 23.6% of GDP. The 2007 tax revenue projection represents a growth of 39.5% over the projected outturn for 2006. The government plans to derive its revenues mainly from direct taxes, import taxes, VAT, duties and loans. To achieve the revenue performance, it will be necessary to enhance the capacities of the revenue agencies to collect the taxes and develop systems to prevent revenue leakages. In addition, project loans, which account for a large portion of government loans, will have to be well negotiated to achieve best economic cost. Resource Allocation

Total receipts at December 2007 are expected to equal total payments at ¢54.3 trillion.

Merchandise exports will play a critical role in achieving surplus on the balance of payments. But this would need to be supported by debt, equity and investments into the economy.

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Total payments are estimated at ¢54,315.9 billion, made up of statutory payments of ¢14,818.1 billion and discretionary payments of ¢39,497.8 billion. Out of the discretionary payments personnel emoluments are estimated at ¢13,167 billion, indicating a 20% increase over the projected outturn for 2006 and representing 33.3% of total discretionary payments for 2007. The level of personnel emoluments also constitutes 41.5% of total domestic revenue, and 9.6% of nominal GDP. Total investments (excluding those financed by statutory funds) are

also programmed to form about 29.3% of total discretionary payments, 40.7% higher than the 2006 projected outturn. The overall budget deficit is expected to be 3.2% of GDP at the end of 2007. The domestic primary balance is targeted at 0.6% of GDP and the domestic debt-to-GDP ratio is projected to be 7.9%. The drivers for these expectations are commodity prices and crude oil prices – cocoa and gold are both expected to perform strongly on world markets; oil prices are expected to remain in excess of US$50 per barrel. Monetary Policy Outlook The BoG is expected to continue to implement a monetary policy aimed at containing inflationary pressure and reducing inflation to a single digit by the end of the year. Broad money is therefore projected at a more restrained rate of 21.4%. A more aggressive target of 22.6% would be pursued for growth in reserve money. The External Sector and Balance of Payments Outlook The government envisages that external financing requirements will continue to be high. Merchandise exports are still expected to drive domestic growth and alleviate poverty. The country’s oil bill is expected to be US$1,618.2 million. Merchandise exports are projected to reach US$4,105.5 million. Together with transfers, the current account is expected to close in deficit at US$619.7 million. An expected net inflow from a mix of debt, equity and other investments will leave, the overall balance of payments at a surplus of US$198 million. Private Sector Competitiveness In line with GPRS II, the private sector is considered the key vehicle for accelerated growth and

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The Economy development. Government policies and programmes will continue to focus on the agriculture, industry and services sectors to address structural constraints that impede increased productivity and competitiveness of the private sector.

These measures include collaboration between the VRA and the mines, the relocation of the Osagyefo barge to Tema, and the procurement of a new plant to generate some 125MW of thermal energy. In the long-term the Bui Dam is expected to augment enhanced generating capacity.

Public Sector Salaries and Wages The wage bill appears high taking a significant portion of the GDP. Policies and initiatives are proposed to look at the whole public sector salaries and wages policy. Any policy initiatives would need to build on any previous government initiative to achieve synergies. Emphasis on productivity should be key!

A wage bill of ¢13.2 trillion, representing 9.6% of GDP and 33.3% of total discretionary expenditure is projected. Phase 1 of the implementation of the public sector pay reform has resulted in the removal of distortions in the GUSS. Phase II involving the assessment of the job content and the consequential placement of all public sector employees will be completed in 2007. A Fair Wages Commission is to be established to administer a new comprehensive pay structure. Multilateral Debt Relief Initiative

IMF, WorldBank and the African Development Bank to forgive a total of US$4 billion.

Millennium Challenge Account (MCA) project takes off in 2007.

A total of US$4 billion is expected as a debt relief package in respect of outstanding obligations to the International Monetary Fund (IMF), the World Bank and the African Development Fund over 50 years. The objective is to augment the current level of public investment to accelerate the achievement of the Millennium Development Goals (MDGs) and GPRS targets. For 2007, with expected inflows from MDRI of ¢1,598.65 billion and HIPC debt relief of ¢2,210.83 billion, planned total poverty reduction expenditure will go up to ¢12,926.83 billion representing 32.7 per cent of the total government expenditure.

All the funds for MDRI for 2007 have been voted for the energy sector to support the funding of the proposed short-term solution to the energy crisis. The MDRI total of ¢1,598.65 billion has been allocated entirely to the VRA to be used to fund the procurement of gas turbines and a barge. A Summary of Sectoral Growth Prospects The agricultural, industrial and service sectors are expected to grow at 6.1%, 7.7% and 6.7%, respectively. Highlights of key programmes driving these growth rates include: 

Under the Food Crop Development Project (FCDP), 1,500 eligible farmers will be given credit support totalling ¢5.3 billion (US$584,000);

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The Livelihood Empowerment against Poverty (LEAP) pilot social grants scheme will be developed in 2007 with support from the HIPC fund;

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The first phase of the Millennium Challenge Account (MCA) project takes off in 2007 with estimated expenditure of US$74.8 million;

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The government is to support at least 5 large and 10 medium and small scale salt producers to expand production in the coastal basins of Western, Central, Greater Accra, and Volta Regions;

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20,000 hectares of oil palm will be planted and one specialized

The Power Sector The government plans to increase generation capacity through various measures. Additional power supply generated upon implementing these measures is expected to be 1,141MW.

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The Economy technology centre for value added oil palm products will be established; 

The National Board for Small Scale Industries will organize 500 tailor-made business improvement programmes for 15,000 entrepreneurs by the end of 2007;

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200,000 employment opportunities will be created; and

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The government is to implement the National Employment Program (NEP).

General Comments Although GDP growth is stable, it is clear that the economy is challenged with shocks from the energy sector with respect to rising world market crude oil prices and low electric power generation. Difficulties regarding effective management of public sector salaries and wages have also added to the challenges facing public expenditure management thereby affecting the overall budget deficit. It is however noteworthy that government plans to put in place policies and initiatives both shortterm and medium to long-term to address the energy and public sector salaries and wages issues. The responsible government ministries departments and agencies should therefore focus on the overall growth of the economy and therefore assist with the dispassionate implementation of all policy initiatives. Government is focused on growth within an environment of stability to trigger off and sustain a true economic renaissance for Ghana. Government plans to continue to pursue its strategy of economic development through effective

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private sector, human resource development and good governance. A snapshot of the macroeconomic environment shows that, overall there are challenges to sustaining the stability achieved over the past four to five years. A summary of the macroeconomic indicators (table) below shows that although the economy did well in achieving 6.2% GDP growth over the target of 6.0%, it did not attain most of the other key indicators. End-of-year inflation was down by 2.2%, import coverage reserves deteriorated from 4 months to 3.6 months, domestic primary balance was in deficit of 2.1% against projected deficit of 1.4%, whiles overall budget deficit fell from 4.5% to 4.9% of GDP. To meet the challenges of underperformance in the other macroeconomic indicators, government has provided directions to reduce inflation to a single digit and reduce domestic primary and the overall budget deficit. For example, to balance the budget, government intends to borrow and obtain grants to augment its revenue inflows. Domestic borrowing, higher public sector wage bill, anticipated energy costs (electricity and fuel), for example, would be a challenge to achieving the macroeconomic targets.

Real GDP Growth End of year inflation Average inflation International reserves to import cover

2006 Projected

2006 Outturn

2007 Projected

6.0%

6.2%

6.5%

7% - 9%

11.2%

7% - 9%

8.8%

11.8%

8.8%

4 months 3.6 months 3 months

Domestic primary balance % of GDP

-1.4%

-2.1%

-0.6%

Overall Budget Deficit % of GDP

4.5%

4.9%

3.2%

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2007 Budget Highlights* *connectedthinking

Direct Taxation Expectation gaps still persist. and insurance premiums should, also be proportionately reduced.

Final Withholding Taxes Final withholding taxes reduced for dividends, management and technical services, and rent payments

Capital gains tax reduced from 10% to 5%

Final withholding taxes on dividends, management and technical services, and rent have been reduced. The following reduced rates will be applicable from 2007: 

Dividends - 8% (previously 10%);

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Management and technical services - 15% (previously 20%); and

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National Reconstruction Levy eliminated for all companies

Capital Gains The capital gains tax rate has been reduced from 10% to 5%. The change was made to encourage the public to register changes in the ownership of properties. National Reconstruction Levy

Rent - 8% (previously 10%)

The government has attempted to reduce these withholding taxes to bring them in line with the reductions in corporate income tax from 32.5% to 25% over the past 5 years.

The elimination of the NRL to all companies, which had previously been announced in the 2006 budget has been reconfirmed. It is good to see that this temporary tax, which was introduced in 2001, has finally been abolished for all companies. Taxation of Benefits in Kind

This reduction is a positive move, however, we believe that for the country to remain competitive relative to other African countries, withholding tax on services provided within and outside of Ghana should further be reduced.

The rates associated with calculating benefits in kind with regards to accommodation and vehicles have been reduced as follows: Accommodation

Other final withholding taxes on interests, branch profits, royalties

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Accommodation with furnishing – the calculation of the benefit

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Direct Taxation has been reduced from 15% to 10% of the person’s total cash emoluments;

personal income tax rates or the widening and increasing of the bands would have been more appreciated.

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Accommodation only – the calculation of the benefit has been reduced from 10% to 7.5% of the person’s total cash emoluments; and

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Shared accommodation – the calculation of the benefit has been reduced from 5% to 2.5% of the person’s total cash emoluments.

Furthermore although the percentages have decreased in calculating the tax benefits on vehicles because the maximum benefits has not been raised ten times the previous amount, in most instances this will result in greater taxes for individuals with employer provided vehicle or fuels.

Vehicles Tax reliefs for individuals increased

No change in personal income tax rates

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Benefits in kind calculations for individuals on accommodation and vehicles are adjusted

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Vehicle with fuel – the calculation of the benefit has been reduced from 15% to 10% of total cash emoluments; in addition, the maximum amount that can be included as a benefit has been increased from ¢300,000 to ¢3,000,000; Vehicle only – the calculation of the benefit has been reduced from 7.5% to 5% of total cash emoluments; in addition, the maximum amount that can be included as a benefit has been increased from ¢150,000 to ¢1,500,000; Fuel only – the calculation of the benefit has been reduced from 7.5% to 5% of total cash emoluments; in addition, the maximum amount that can be included as a benefit has been increased from ¢150,000 to ¢1,500,000; and Driver, vehicle with fuel – this new category has been added and the calculation of the benefit is 12.5% of total cash emoluments; the maximum amount that can be included as a benefit is ¢3,500,000.

Tax Reliefs for Individuals The government announced that in line with its objective of increasing disposable income of taxpayers, the following increases in tax reliefs are proposed: 

Marriage/Personal relief – raised from ¢300,000 to ¢350,000 per annum;

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Old Age relief – raised from ¢300,000 to ¢350,000 per annum;

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Children’s Education/Child relief – raised from ¢240,000 to ¢300,000 per annum;

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Aged Dependent relief – raised from ¢200,000 to ¢250,000 per annum; and

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Cost of Training relief – raised from ¢200,000 to ¢1,000,000 per annum.

Whilst these increases are welcome news for taxpayers, the government’s objective of increasing disposable incomes of taxpayers would have been better accomplished by broadening the bands and/or reducing pay as you earn (PAYE) tax rates. Venture Capital Tax Incentives

Whilst these benefits may reduce the tax burden on some individuals who have accommodation provided by the company, they will not benefit all workers and an adjustment to the

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The government-sponsored Venture Capital Trust Fund has signed two investment agreements with venture capital finance companies; however,

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Direct Taxation the government would like to see more venture capital finance companies involved in the scheme. Venture capital tax incentives increased

In this regard the following enhancements to the program have been announced: 

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Tax Arbitration Board established

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

Full tax exemption from corporate income tax, dividend tax and capital gains tax has been extended from five years to ten years; Losses from disposal of the shares may be carried forward for up to five years after disposal (whereas previously the five year carry-forward was only available up to five years after the tax exempt period expired); Distributions of interest, dividends and capital gains to investors in venture capital finance companies shall be tax exempt; and The 100% chargeable income deduction granted to financial institutions investing in venture capital finance companies is now extended to include all corporate and individual investors who invest in venture capital finance companies.

This is a positive step in the continued support of the venture capital industry in Ghana. Land registration initiatives put in place

Strategy to broaden tax net

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Title Registration on Land As part of the government’s initiatives to encourage land registration and investment, the following proposed changes have been recommended: 

First, the government will waive any interest on arrears of rent owed to the government by lessees for 2007; and



Secondly, to encourage title registration, fees on land registration will no longer be

based on land value but will be based on flat rates, as follows: 

Up to 1 acre - ¢350,000;



1 acre to 100 acres ¢500,000;



Above 100 acres - ¢10,000 for each additional acre;



Mortgages - ¢350,000; and



Discharge - ¢100,000.

These new initiatives may encourage land registration. Establishment of Tax Arbitration Board (TAB) To enhance transparency in tax administration and expedite the resolution of appeals, the government is proposing the establishment of a TAB. The TAB will decide on appeals against the decisions of the Revenue Commissioners. The Revenue Agencies Governing Board will facilitate the setting-up of the TAB. Any agencies that are put in place to facilitate disputes taxpayers may have with the authorities must be applauded and hopefully the TAB will be as efficient in resolving issues as the Fast Track High Courts. Broadening the Income Tax Base The government has indicated that a significant percentage of vehicle registrations is done by the informal sector operators, most of whom are not taxpayers. Any additional measures that will broaden the tax net to bring in more taxpayers should be supported and hopefully, this will result in less tax burden on those currently bearing the tax costs of non-paying taxpayers.

Ghana Budget Highlights: Direct Taxation

13

Direct Taxation More Double Tax Treaties to be concluded DTTs with Sweden and Switzerland have been initiated and should be completed in 2006.

when it is already burdensome to receive an income tax clearance certificate; 

The need for personal tax rates to be reduced or the bands widened to put more disposable income into taxpayers’ pockets in line with the new fair wage policy;



The absence of adequate definitions and terminology under the Tax Code to reduce misunderstandings between the taxpayers and the tax authorities;



The need for the government to implement a computerised system that allows the sharing of information between the various agencies to reduce delays and errors in information provided to taxpayers;



Ensuring the timely issuing of Tax Clearance Certificates and WHT certificates;



Allowing exporters to issue VAT Relief Purchase Orders on their main taxable inputs;

Whilst some of the concerns of some industries have been addressed, the concerns of many others have not been considered.



Introduce a mechanism to allow the offset of taxes refundable against other forms of taxes payable; and

For example:



Banks subjected to the same bad debts provisioning requirements as other companies when their business is inherently different to other companies.

DTTs are also being pursued with Syria, the Netherlands and the Czech Republic.

Additional Double Tax Treaties being negotiated

The pursuit of additional DTTs is truly a positive decision and should make Ghana more competitive in attracting investors from these countries. However, it is also important to ensure that once signed, DTTs are properly and timeously implemented. Comments The government stated that it is determined to promote the practice of efficient taxation and enhance confidence in the tax system. In addition, the government restated its commitment to introducing measures that seek to remove the bottlenecks that impede revenue generation and collection.



The non-availability of loss carry-forwards to all companies;



Withholding tax rates on local goods and services have not been reduced to reflect current income tax rates;



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Additional bureaucracy introduced that requires the taxpayer to receive a VAT clearance certificate at a time

It is expected that the government would relentlessly work towards resolving these concerns of taxpayers to improve its relationship with taxpayers.

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Direct Taxation

2007 Budget Highlights* *connectedthinking

Value Added Tax Possible administrative burden for businesses due to the introduction of VAT Clearance Certificates Overview Overall, there were no major changes to VAT; although certain incentives were introduced to encourage the pharmaceutical industry. The key changes are summarised below:

drugs, VAT is to be eliminated on raw materials and packaging materials used in the manufacturing of drugs for the treatment of HIV/AIDS, malaria and tuberculosis. All other locally produced pharmaceutical products will be zerorated.

VAT Clearance Certificate

VAT Clearance Certificate introduced

3% flat rate scheme for the informal sector

VAT exemptions on certain pharmaceutical raw materials

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In order to assist the VAT Service in achieving its target of 100% compliance, VAT clearance certificates (VCC) will be issued to businesses in good standing. These certificates will be issued upon application from the first quarter of 2007. The VCC will have a six-month validity period and will be necessary for competitive tendering and clearing goods from the ports, for example. The introduction of the VAT clearance certificate may increase the administrative burden of taxpayers and may, for example, prolong the process of clearing goods from the ports. The VAT Service’s efforts to eliminate red-tape in the VAT process may suffer a set-back as a result of the introduction of the VCC. VAT Exemptions to Pharmaceutical Industry In order to encourage local pharmaceutical industries to increase production of locally manufactured

This measure is expected to make locally produced pharmaceuticals for these selected illnesses competitive against their imported substitutes. It is hoped that, no problems will arise from what are and what are not raw materials used in the drugs referred to. With regards to the drugs associated with HIV/AIDS, malaria, and tuberculosis, the manufacturers would be more pleased to see these as zero-stated opposed to exempt as this would allow them to claim input credits. Standard VAT Rate This year is to see the implementation of the flat rate scheme of 3%. This initiative is targeted at the informal sector and the rate would be applied to the taxable persons without recourse to input VAT claims.

Ghana Budget Highlights: Value Added Tax

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Direct Taxation

2007 Budget Highlights* *connectedthinking

Customs & Excise Some changes geared towards enhancing efficiency and effectiveness Reduction in Concessionary Import Duty Rate

Levy on timber exports to be reviewed during 2007

The Minister has proposed a reduction in the concessionary import duty rate from 10% to 5% for raw materials covered under this regime. This is a step in the right direction as it will encourage local manufacturers to increase production and give them a balanced platform to compete against their foreign counterparts. Introduction of Computerised Initiatives

Elimination of import duties on selected pharmaceuticals

Continued computerisation of CEPS

Excise taxes to be revised from current ad valorem regime to specific rate structure

The Customs Excise and Preventive Service (CEPS) aims to introduce the following: 

Electronic transactions price database;



Verification of customs clearance status of vehicles;



Provision of vehicle database; and



Electronic transmission of permits, licences and other authorisation to CEPS via GcNet.

reduce or eliminate fraudulent practices. Any move towards enhanced computerisation should be commended. Levy on Timber Exports

The levy on timber exports is to be reviewed during 2007. However, the existing rate of 3% will remain in use for now. No Import Duties on Selected Pharmaceuticals

In a bid to encourage local pharmaceutical manufacturers, import duties will be eliminated on raw materials and packaging materials used in the manufacture of HIV/AIDS, malaria and tuberculosis drugs. Rationalisation of Excise Taxes During 2007, a comprehensive bill will be prepared to convert excise tax on alcoholic drinks, malt drinks, carbonated soft drinks, cigarettes and other tobacco products from the current ad valorem regime to a specific rate structure. Details of implementation will be finalised by the end of March 2007.

These measures are intended to facilitate the clearing of goods and

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Ghana Budget Highlights: Customs & Excise

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Customs & Excise

Policy on importation of used motor vehicles to be reviewed in order to discourage importation of over aged vehicles

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This will have a general effect of reducing excise taxes on beer, stout and carbonated soft drinks. Excise tax on cigarettes will also be reduced; however, taxes on spirits will be increased.

Importation of Used Motor Vehicles There will be changes to the mode of depreciation of used vehicles for valuation purposes and a review of the relevant policy during 2007. This will be aimed at discouraging the importation of over aged vehicles.

Ghana Budget Highlights: Customs & Excise

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Customs &Excise

2007 Budget Highlights* *connectedthinking

Sectoral Outlook Sectoral Performance and outlook for 2007 Introduction

Development agenda of the government still based on direction of GPRS II

Three thematic areas identified under GPRS II

Thus selected policies, programmes and activities of MDAs have been geared towards addressing structural constraints from the previous year to increase productivity, adopt new technologies and further enhance the competitiveness of the private sector in relation to the agriculture, industry and service sectors.



11 key MDAs to lead in drive towards achievement of competitive private sector.

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development of the rural economy through the modernisation of agriculture led by a vibrant and competitive private sector;



enhanced infrastructure development; and



sustained environmental protection through reafforestation.

Agricultural Sector With the agriculture sector being the champion for accelerated growth, the MOFA will focus on the following policies and programmes:

The focus of MDAs in 2007 will therefore be on:

Strengthening the capacity of the private sector as the engine of growth



The Ministries, Departments and Agencies (MDAs) continue to follow the development agenda outlined in the GPRS II.

Infrastructure development (especially in energy, roads, telecommunication, water supply and housing);



Implementation of right incentive framework for public sector employees; and



Effective decentralisation for enhanced service delivery.



Promoting selective crop development;

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Modernising livestock development;

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Improving access to mechanised agriculture;

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Accelerating the provision of irrigation infrastructure;

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Increasing access to extension services; and



Enhancing access to credit and inputs for agriculture.

Private Sector Development (PSD) In furtherance of the government’s strategy to make the private sector the key vehicle for accelerated growth and development, policies will continue to focus on the following:

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Sectoral Outlook

Agricultural Financing



Credit will be disbursed to farmer groups for production, storage, processing and marketing.

Computerisation of the existing land sector agencies will continue;



Human resource capacity development will be undertaken to train the staff of the land sector agencies; and



Collaboration will take place with the Millennium Development Authority to establish land title registration services.

The Food Crop Development Project (FCDP) will make credit available to 1,500 eligible farmers. Cocoa Industry



The government has put in place measures to boost the cocoa industry



 The MLFM will initiate key policy measures to improve forestry and wildlife contribution to national wealth

In the 2006/07 Crop Season cocoa output is projected at 600,000 metric tonnes; Producer Price of ¢9,150,000 per metric tonne is set for the 2006/07 cocoa season. The new price for a bag of 64 kg is now ¢571,875 as against a previous price of ¢562,500; and Government has supported Ghana COCOBOD to secure a pre-export trade finance facility of US$810 million from external financial institutions. The facility, allows COCOBOD to withdraw an additional US$70 million to finance the 2007 Light Crop purchases.

Lands Sector .

Activities of the Land Administration Project will be strengthened. Activities will include: The drafting of new legislation for land administration and institutional reform will be completed and laid before parliament; The coming in force of a new legislation for land administration should help to address the problem of land dispute in the country, and promote investor confidence in acquiring and developing lands for business activities; 

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The inventory of state lands will continue in the 3 northern regions;

The Land Valuation Board (LVB), in partnership with Private Sector Valuers, will carry out the revaluation of properties within the Accra Metropolitan Assembly area. Forestry Sector The Ministry of Lands, Forestry and Mines (MLFM) will undertake the following: 

260 timber leases will be converted to Timber Utilisation Contracts. Conversions are expected to increase revenue generation; and



Wildlife institutional capacity will be built to enhance management of competitive and transparent international tendering in respect of the commercialisation of wildlife related infrastructure.

Mines Sector The MLFM will continue to regulate the use and handling of explosives through the issuance of permits and directing the manner in which explosives should be stored and disposed of. The MLFM will continue with exploration and geological mapping of targeted areas to generate geological information for appropriate policy decision making and for dissemination to the general public, especially investors.

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Sectoral Outlook

The energy sector challenges

Liberalisation of the Petroleum Sector to speed up private sector investment.

The MLFM will continue to assist small scale mining cooperatives.

will be allowed to import crude oil for refining.

Energy Sector

Much as the liberalisation of the downward stream sector would in no doubt help in the development of the economy there should be control measures to prevent the adulteration of fuel in the refinery process.

A number of initiatives will be enacted to address the energy sector challenges and to ensure continuous supply of reliable energy: 

The medium term strategic goal for the Power Sub-sector is to restore the power generating capacity of the country and also to upgrade the infrastructure in order to improve the reliability of power supply; and

 The Volta River Authority (VRA), Establishment of cold chain facility from farm gate to market centres

in collaboration with the Ministry of Energy (MOE) has concluded arrangements to procure an 80 MW power plant which will be operational by April 2007. Under the Self Help Electrification Project (SHEP)-4 Programme, over 200 communities will be connected to the national grid in 2007. The full unbundling of VRA will be completed in 2007 with the establishment of a separate Electricity Transmission Utility (ETU). The MOE will continue to promote and install solar powered systems in selected institutional facilities under the Ghana/Spanish Loan protocol. The MOE will initiate practical regulatory measures to speed up development of renewable energy technologies, particularly wind, solar and waste-to-power.

To facilitate the development of renewable energy resources, a Renewable Energy Law will be enacted to provide the legal framework for accelerating the development of renewable energy in the country. Ministry of Trade, Industry, PSD and Presidential Special Initiative (MOTI, PSD & PSI) The MOTI policy direction for 2007 will be to develop a vibrant, technology-driven, competitive industrial sector that significantly contributes to economic growth and employment creation. This will involve mass mobilisation of the rural communities and other vulnerable groups, including women. The MOTI will facilitate the establishment of a cold chain facility from the farm gate to export market centres as well as reducing clearance time. The National Industrial Policy, which will focus on strategic sectors to drive the continuing industrialisation process, will be completed.

Petroleum Sector The medium term strategic goal is to fully implement the liberalisation of the downstream sector, speed up private sector investment and manage the impact of rising crude oil and petroleum product prices on the national economy. Within the context of the liberalisation, the private sector PricewaterhouseCoopers

The government will continue to encourage investment in the search for Ghana’s hydrocarbon resources. The search in deep waters will be boosted and exploration in the Voltain Basin is expected to commence in 2007.

Tourism

To accelerate community-based tourism and integrated development, the Ministry of Tourism and Diasporan Relations (MOTDR) intends

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Sectoral Outlook

organising five major international fairs and exhibitions to promote Ghana as a tourism destination: Development of sports facilities to meet international standards



A week long Paragliding Festival to boost both domestic and international tourism at Atibie during the Easter celebration;



Emancipation and Panafest celebrations scheduled from 21 July 2007 to 5 August 2007;



Launch of the “Akwaaba Anyemi’’ programmes, dubbed the “Joseph Project”, aimed at attracting Ghanaians back to Ghana;



National Chocolate Day to coincide with Valentine’s Day on 14 February; and



Tours to Tetteh Quarshie Cocoa Farm at Mampong and other cocoa growing areas.

ICT Sector

Four new ICT bills to be presented to parliament.

To create an effective ICT environment, the Ministry of Communication will submit four bills, the Electronic Transaction Bill, the Telecommunications Bill, the National Communications Authority (NCA) Bill and the National Information Technology Agency Bill through Cabinet to Parliament for approval in 2007. Educational Sector

In 2007, various preparatory activities including work on construction of Sekondi and Tamale stadia as well as the rehabilitation of the Ohene Djan Stadium, Accra El Wak Stadium, Accra and Baba Yara Stadium, Kumasi will be completed. In addition, 20 community parks will also be upgraded. Preparations towards the CAN 2008 will certainly result in the development of sports facilities in line with international standards. This is expected to market Ghana to the world during the CAN 2008 sporting events. Health Sector In 2007 the health sector will begin the implementation of the new health policy focusing on achieving three inter-related and mutually reinforcing objectives: 

Ensuring that children survive and grow to become healthy and productive adults that reproduce without risk of injuries or death;



Reducing the excess risk and burden of morbidity, disability, and mortality, especially in the poor and marginalized groups; and



Reducing inequalities in access to health, population and nutrition services.

Basic Education

National Health Insurance Scheme

The drive towards the attainment of Universal Primary Completion by 2015 and Gender Parity by 2008 will be given additional impetus.

The Ministry of Health (MOH) together with its collaborative agencies will sustain the NHIS and expand its coverage nationwide to about 55 per cent of the population.

The Capitation Grant Scheme to increase access to basic education will be sustained and government will also continue to subsidise the examination fees of the BECE.

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Sports

Divestiture Implementation Committee (DIC) In 2007, the DIC will continue to focus on off-loading government

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Sectoral Outlook

Private sector enterprises remain imperative to national development, self dependency and poverty reduction.

shares in existing companies through the Ghana Stock Exchange. This will ensure public participation in the ownership of divested State Owned Enterprises (SOEs) and improve revenue flow to the government. The continued divestment of SOEs supports governments’ assertion that the private sector is the engine of growth. This exercise is expected to revamp very important businesses that have gone down, and also create more employment opportunities. The Ghana Investment Promotion Centre (GIPC) GIPC will continue to create and facilitate the atmosphere for domestic and foreign investment in various sectors of the economy (with the exception of mining and petroleum).

Investment drive for accelerated development and job creation

In 2007, the GIPC will continue to implement its corporate plan in conjunction with relevant government agencies whose activities have a direct bearing on GIPC. Key areas of implementation will be to improve the enabling environment, investor facilitation and servicing, investor promotion and generation, review of the restructured one-stop-shop for impact and institutional development. In this golden age of business, there is the need to make the GIPC’s onestop-shop concept a reality. This will facilitate doing business in Ghana and thus project the country as the preferred investor destination.

borrowers will be assisted with credits. Public Procurement Board The board will undertake the following activities: 

Assessment of 200 entities to determine their level of compliance with the Public Procurement Act;



Development and organisation of training for 500 procurement entities;



Implementation of the Webbased procurement planning software;



Completion of the development of software for procurement planning, recording and management, and roll out to all MDA’s and MMDA’s; and



Further consultations with stakeholders on the Domestic Content Bill which offers incentives to firms operating in Ghana to use a specific percentage of their inputs from domestic sources.

Non-Tax Revenue Mobilisation To improve non-tax revenue collection, the Ministry of Finance and Economic Planning (MOFEP) will implement the following measures:

Micro-financing and small loans Government continues to pursue its policy of supporting the development and growth of a sustainable micro financing system under GPRS II as a means of reaching the productive poor of society with credit and other financial services. Some steps have been taken to strengthen the micro credit and small loans scheme. It is expected in 2007 that 110,000 micro and 22,000 small scale PricewaterhouseCoopers



Work with Bank of Ghana and Commercial Banks to introduce on-site banking, and where possible to facilitate the collection of non-tax revenue and internally generated funds (IGFs) at MDA premises;



Work with the IAA to carry out auditing of (IGF’s) of selected MDA’s and MMDAs and District Assemblies in order to strengthen their collection mechanisms,

Ghana Budget Highlights: Sectoral Outlook

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Sectoral Outlook

improve internal controls and reduce revenue leakages; 

Collaborate with the Ministry of Local Government and Rural Development to implement agreed measures to improve the capacity of MMDA’s to generate revenue; and



Facilitate the review of obsolete and unrealistic fees and charges by MDAs.

Internal Revenue Service (IRS) The IRS will undertake the following activities:  Internal Revenue Service (IRS) to run a database of its operations.

VAT services to enhance the use of Cash Registers

Establish 5 per cent withholding tax monitoring units to draw deal with non-compliant taxpayers to help maximize collection;



Intensify tax education, enforcement and audit;



Re-launch the tax stamp and establish the Small Taxpayers Bureau to administer the rent tax and tax stamps; and



Commence full computerisation of its operations.

Customs Excise and Preventive Service CEPS will undertake the following activities: 

Enhance the performance of personnel through Capacity Building programmes;



Commence electronic transmission of permits, licenses and other authorization to CEPS (GCMS) via GCNet;



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The GCNet Unit in the Research Division will be made fully operational to capture taxpayers

who prepare fictitious accounts; and 

As part of CEPS’ programme to deepen automation of the processes and procedures, all MDAs whose license, permit or any other form of authorization or approval (including those for exemptions) is required in the import/export trade, shall be required to be connected to the GCNet not later than 1 April 2007.

This measure will not only facilitate clearance of goods but also eliminate fraudulent practices by both traders and officials in the procurement and utilization of such facilities. VAT Registration and Enforcement

Physical surveillance of VAT registered businesses will be stepped up to complement the invoice invigilation and improve compliance. Use of Cash Registers

In 2003 VAT and import duty on cash registers were removed to enable small and medium size enterprises (SMEs) dealing in high volume low value goods acquire them. The objective was to improve their record keeping and financial management capabilities. In year 2007 the VAT Service will capitalise on this initiative by further enhancing existing retail schemes and own-invoice dispensations to ensure that full advantage is taken of the control mechanisms inherent in these technologies to boost compliance by SMEs with the requirements of the VAT law and thereby enhance VAT revenue. Ministry of Public Sector Reform The Ministry of Public Sector Reform will continue its activities in close collaboration with implementing

Ghana Budget Highlights: Sectoral Outlook

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Sectoral Outlook

agencies to achieve the following goals: 

Public Sector Reform continues unabated

Immigration procedures to be computerised



Records Management improvement;



Public Sector Pay and Pension Reform; and



Facilitate and of the deployment of ICT infrastructure and skills within the Civil Service in order to ensure the efficient execution of government programmes.

The revision of the Companies Code, which has been on-going may be completed by the second quarter of 2007.

The revision of the Companies Code is expected to make the provisions therein clearer to the business community. The revision is also expected to bring the Code in line with current business law practices. Ministry of Interior

In particular the Ministry will:

Activities to be undertaken by the Ministry of Interior in 2007 will include:



Implement the new salary structure for all public sector workers;



Formulate policies on Migration and Work Permits; and



Establish a National Commission on salary administration;



Computerise the immigration procedure.



Restructure the public service including the establishment of competitive recruitment, selection and training; and



Establish performance based administration.

Ministry of Justice The Ministry of Justice will continue with the following activities in 2007:  Business registration to be enhanced to attract investors

Continue with the implementation of business registration and licensing reform strategy to minimise the number of days for registering business from 14 to 5 days. To make the registration of businesses more accessible, the Registrar General’s Department will open regional offices in Kumasi and Tamale.

The effective implementation of business registration and licensing reform strategy will certainly resolve the delays in business registration and encourage more investors to do business in Ghana.

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Ghana Budget Highlights: Sectoral Outlook

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*connectedthinking