The Minister of Finance, Ken Ofori-Atta has disclosed that their will be a freeze in government employment from next year.
According to him there will be an embargo placed into recruiting for the civil and public services from January, 2023.
This, he said, at the ongoing budget presentation at Parliament House in Accra.
“[There’ll be] a hiring freeze for civil and public servants [from January 2023]. A reduction of expenditure on appointments, including salary freezes, together with suspension of certain allowances like housing, utilities & clothing.”
Additionally, the Minister announced that VAT will be increased by 2.5%.
The standard VAT rate is 12.5%, except for supplies of a wholesaler or retailer of goods, which are taxed at a total flat rate of 3%.
Meanwhile, Mr Ofori-Atta has revealed that the government will reduce the controversial and burdensome Electronic Transactions Levy (E-Levy) from the current 1.5% to 1% and also reduce the threshold from GHC 100 per transaction.
According to him, the move is one of the various initiatives the government intends to roll out to turn the economy around and lessen the severe economic hardship that Ghanaians are currently going through.
At least GH₵6.9 billion was expected to be raised from the tax that many analysts have described as regressive, but the figure had to be revised to about GH₵4.9 billion following the delay in the passage of the e-levy bill. Having missed the GH₵1.46 billion target for the first half of the year, the government had to revise the tax measure downwards, again, to GH₵611 million.
Also, the Ghana Revenue Authority (GRA) has disclosed that three hundred and twenty-eight million cedis (GH¢328m) have been realized so far from the e-levy.