- August 16, 2022
- Posted by: Charles Yeboah Nixon
- Categories: Banking and Finance, Economics, Finance, Grants, Taxation
Total Revenue and Grants for the first five months of 2022 was estimated at GH¢29.5 billion, about 5.9% of Gross Domestic Product (GDP), lower than the target of ¢34.84 billion (6.9% of GDP), the Bank of Ghana has pointed out in its July 2022 Monetary Policy Report.
This outturn represented 84.7% of the target and recorded a year-on-year growth of 19.7 percent. During the review period, domestic revenue totalled GH¢29.30 billion (5.8% of GDP), below the target of GH¢34.57 billion (6.9% of GDP).
The revenue outcomes reflected mixed performances for both tax and non-tax proceeds.
Of the total revenue and grants, tax revenue, comprising taxes on income & property, taxes on domestic goods and services and international trade taxes, was GH¢22.99 billion (4.6% of GDP).
This is lower than the target of GH¢26.85 billion (5.4% of GDP).
This represented a negative deviation of 14.4%.
Taxes on income property
Taxes on income and property, made up of personal income tax (PAYE), self-employed taxes, company taxes (including taxes on oil), royalties from oil and minerals, other revenue, and airport taxes, totalled GH¢11.09 billion (2.2% of GDP).
This outturn was 14.7% below the target of GH¢13.0 billion (2.6% of GDP), with all the key tax components missing their respective targets.
Taxes on domestic goods
Taxes on Domestic Goods and Services, consisting of Domestic VAT, Excise Duty, GET Fund Levy, National Health Insurance Levy (NHIL) and Communication Service Tax (CST), for the review period summed up to GH¢9.95 billion (2.0% of GDP), and was 13.5% lower than the target.
On a year-on-year basis, the outturn represented a growth of 10.3%.
Taxes on international trade
Taxes on International trade, comprising mainly import duties, was GH¢3.37 billion (0.7% of GDP) and was below the target of GH¢3.45 billion (0.7% of GDP) by 2.3%. This tax type also recorded a year-on-year growth of 31.8%.
Tax refunds was GH¢1.42 billion, higher than the target of GH¢1.10 billion for the period and registering a year-on-year growth of 38.5%.
Non-Tax revenue for the period under review amounted to GH¢4.53 billion, representing 80.9% of the target.
The outturn represented a year-on-year growth of 56.7%.
The underperformance of non-tax revenue, the Central Bank said was mainly due to lower than budgeted lodgements and retention resulting mainly from lower collection efforts by some Ministries Department and Agencies (MDAs). Unrealised dividend payments against the budgeted target also contributed to this development.
Other revenue measures, made up of ESLA proceeds, raked in a total of GH¢1.56 billion.
This was below the target of GH¢1.790 billion by 12.7%.
Meanwhile, the government received project grants in the sum of GH¢191.3 million, lower than the envisaged target of GH¢262.0 million by 27%.
This outturn was also significantly lower than the GH¢682.8 million recorded in the corresponding period of 2021, thus reflecting a year-on-year decline of 72%.