The minimum taxable personal income has been raised from 900,000 cedis to 1.2 million cedis with effect from January this year, Finance Minister Yaw Osafo-Maafo said in this year's budget statement on Friday.

The top marginal tax rate of 35 per cent applicable to incomes in excess of 17.4 million cedis is now applicable to incomes in excess of 48 million cedis, he said.

He also said that the top marginal tax rates for employees and the self-employed have been reduced from 25 per cent to 20 per cent for the middle and upper income groups.

The tax rates for the upper income groups have also been reduced from 35 per cent to 30 per cent. Other reliefs are :
1. An individual with a dependant spouse or at least two dependent children - 300,000 per annum (under the marriage and children's relief).
2. A disabled person engaged in a business or employment - 25 per cent deduction from his assessable income (disabled person's relief);
3. Any person of or above the age of 60 years is entitled to 300,000 per annum as relief from any business or employment (under old age relief);
4. A relief of 240,000 cedis per annum is granted any person sponsoring the education of his child or ward in any recognised registered education institution (children's education relief) limited to three children;
5. An individual is allowed a relief of 500,000 cedis in respect of cost of training, which updates or improves his professional, technical or vocational skills (training cost relief).
Mr Osafo-Maafo said all the reliefs would now be enjoyed up- front through the information provided by the worker's employer unlike in the past where they are paid after filing tax returns.
Mr Osafo-Maafo said meanwhile, the rate of withholding tax has been increased from five per cent to 7.5 per cent.
The corporate tax rates on the other hand have been reduced from 35 per cent to 30 per cent for companies listed on the Ghana Stock Exchange with reference to the new tax law. Corporate tax rate for unlisted companies is now pegged at 32.5 per cent.
Mr Osafo-Maafo stated that the Internal Revenue Service and the new national tax audit team to be formed would enforce the rent law. This would ensure the payment of rent income by landlords.