5% on profit-before-tax of banks introduced to defray the cost of the banking sector clean-up

The Acting Finance Minister Osei Kyei Mensah Bonsu has disclosed that the government will introduce a financial clean-up levy of 5% to help defray the commitments made by the government.

Delivering the 2021 budget statement in parliament on Friday, he said the banking sector clean-up exercise cost the state over GH¢21.0 billion.

In order to defray the cost, the Minister said the government has decided to introduce the 5% levy.

This he added would be reviewed in 2024.

He said: “the financial sector clean-up and the refund of monies to depositors have restored investor confidence and protected the hard-earned savings of millions of Ghanaians. However, this has come at a huge cost of over GH¢21.0 billion to Government.

Mr. Speaker, Government will, therefore, introduce a financial sector clean-up levy of 5% on profit-before-tax of banks to help defray outstanding commitments in the sector. The levy will be reviewed in 2024.”

Aside from that he said to maintain the improvements on our roads, government will review existing road tolls and align them with current market rates. This will form part of the framework for promoting burden sharing as we seek to transform our road and infrastructure sector in a post-COVID era.

“Furthermore, in 2021, we will amend the Fees and Charges (Miscellaneous Provisions) Act, 2018 (Act 983) that governs the setting of Rates and Tolls to accommodate an automatic annual adjustment that will be pegged to the previous year’s average annual inflation as published by the Ghana Statistical Service”.

By: Rainbowradioonline.com

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