Parliament has approved to the Value Added Tax (VAT) Amendment Bill 2023, instituting a 5 percent flat rate for the rental of commercial premises and the sale of immovable property by an estate developer. The bill also includes provisions for a zero rate on locally produced sanitary pads and the exemption of VAT on the import of electric vehicles for public transportation.
Despite opposition from the Minority caucus, who objected to the imposition of taxes, the bill secured approval with 137 votes in favor and 134 against, following a headcount vote.
In addition to the VAT Amendment Bill, Parliament passed the 2023 Appropriation Bill, granting the government approval to expend 259 billion Ghana Cedis from the consolidated fund in the year 2024. The appropriation bill consolidates all estimates of the government’s proposed expenditure for the upcoming financial year.
The approval of the appropriation bill followed the passage of other revenue bills, including the Excise Duty Amendment Bill 2023 and the Emissions Levy Bill 2023. Once sanctioned by the President, the 2023 Appropriation bill will become effective on January 1, 2023.
As Parliament adjourns sine die for the Christmas festivities, the decisions made in this session will have significant implications for the country’s fiscal landscape in the coming year.
