Budget 2019: ‘Luxury tax’ for GH¢10,000+ income earners reviewed

People who earn GH¢10,000 and above will no longer be subject to the additional personal income tax that was introduced in July this year.

Instead, those who earn income above GH¢20,000 will now be subject to a tax rate of 30 per cent.

It follows plans by the government to revise the additional personal income tax band upward in line with public reaction to the revenue measure that was introduced in the 2018 Mid-Year Budget Review.

The Finance Minister, Mr Ken Ofori-Atta, announced this today, when he presented the 2019 Budget Statement and Economic Policy to Parliament.

He said “We have listened to the feedback from the public and come to the conclusion that some relief from this tax measure is justified.

“Accordingly, government proposes to review this band to impact monthly income above GH¢20,000 at a rate of 30 per cent,” the minister said.

Mr Ofori-Atta said the ministry will bring the necessary changes to Parliament for the appropriate legislation to be enacted.