Parliament has passed a bill amending the Income Tax Act, 2015 (Act 896), introducing significant changes aimed at easing the tax burden on workers and aligning thresholds for small businesses.
The amendment revises individual income tax rates, exempts the National Daily Minimum Wage from income tax, and harmonises the presumptive tax turnover threshold with the VAT registration threshold. Lawmakers say the reforms are designed to promote equity, protect low‑income earners, and simplify compliance for businesses.
The passage of the bill marks a major step in Ghana’s ongoing tax reforms, which seek to broaden the tax base while ensuring fairness in the system. By exempting the minimum wage, Parliament has effectively shielded the lowest‑paid workers from direct income taxation, a move expected to provide relief to thousands of households.
The harmonisation of thresholds is also expected to reduce administrative bottlenecks for small enterprises, creating a more predictable environment for compliance and revenue mobilisation.
The bill now awaits presidential assent to become law.
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