The Ghanaian government recorded significant growth in direct tax collections for the first five months of 2024, raking in a total of GH¢22.19 billion, according to the Central Bank’s July 2024 Monetary Policy Report.
This marks a 31.6 percent increase compared to the GH¢16.86 billion collected during the same period in 2023.
A direct tax is a type of tax that is paid directly to the government by the individual or organization on whom it is imposed.
The report further detailed that activities within the manufacturing sub-sector, as indicated by trends in direct tax collection and private sector workers’ contributions to the Social Security and National Insurance Trust (SSNIT) Pension Scheme (Tier-1), also improved as of May 2024.
“Total direct taxes increased by 43.7 percent (year-on-year) to GH¢4.11 billion in May 2024, relative to GH¢2.86 billion recorded in May 2023,” the report highlighted.
This notable growth in tax revenue was driven by various sub-tax categories, with income tax (PAYE and self-employed) accounting for the largest share at 48.8 percent. Corporate tax contributed 38.4 percent, while “other tax sources” made up the remaining 12.8 percent.
Additionally, private sector contributions to the SSNIT Pension Scheme (Tier-1) surged by 39.6 percent year-on-year, reaching GH¢470.92 million in May 2024, up from GH¢337.23 million during the same month in 2023.
For the first five months of 2024, cumulative contributions grew by 28.8 percent, totaling GH¢1.97 billion, compared to GH¢1.53 billion recorded in the corresponding period of 2023.