[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109206-en":3,"doc-seo-109206-105":31,"detail-sidebar-cat-0-en-105":92},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},109206,34359740700684,"Finn","https://ap-avatar.wpscdn.com/avatar/1f400023980c374ae676?_k=1777273430885731487",8,"Research & Report","Ghana Public Finance Review - Volume 2 - Detailed Analysis - Annexes","Annexes provide methodological and data details for assessing Ghana’s fiscal policy instruments, focusing on Commitment to Equity (CEQ) analysis and the fiscal cost of tax expenditures. The CEQ approach builds on an updated microsimulation framework using 2016/17 GLSS 7 data calibrated to 2023, with poverty lines adjusted for inflation and tax and transfer components updated for the current system. It also documents CEQ limitations. A second annex explains VAT expenditure costing via the VTTL model and outlines PIT and import duty cost estimation using tax and customs datasets.","Public Disclosure Authorized Public Disclosure Authorized  \nAnnexes  \nDisc losure Authorized  \nGhana Public Finance Review | Volume 2 / Detailed Analysis 236  \nANNEX 1  \nBrief description of the Commitment to Equity (CEQ) approach  \nData. The CEQ results build upon a microsimulation model using the GLSS  \n7 (2016/17) . The income and expenditure data, as well as the system’s rules,  \nhave been updated to reflect the situation in 2023. Expenditure and incomes  \nhave been adjusted by sectoral growth rates between 2017 and 2023. The  \npoverty line has been adjusted by inflation rates. Direct taxes, indirect taxes,  \nand transfers and subsidies have been updated to reflect what is in place in  \n2023.  \nMethodology. The microsimulation tool builds upon the CEQ methodology to  \narrive at different income concepts that add or remove income components.  \nThe method begins with disposable income, which is equated to observed  \nexpenditures, since the latter is the measure used in Ghana to monitor living  \nstandards. All direct and indirect transfers are subtracted from disposable  \nincome to derive net market income. Gross income is obtained by adding  \ndirect taxes and social security contributions to disposable income. Market  \nincome plus pensions is obtained by subtracting social security contributions  \nand adding pensions and direct and indirect transfers. Consumable income  \nis calculated as disposable income minus indirect taxes, plus indirect  \nsubsidies. Final income is obtained by adding in-kind government transfers to  \nconsumable income.  \nCaveats: The CEQ methodology has limitations tied to data availability,  \nexcluding key elements like corporate taxes, international trade, property  \ntaxes, and infrastructure spending from consideration. It also overlooks  \nbehavioral and general equilibrium effects, relying on market income as a  \nfoundational approximation. Assumptions like perfect consumer demand  \ninelasticity mean the entire tax burden falls on consumers and workers.  \nFinally, the analysis lacks a dynamic perspective, ignoring trade-offs between  \ncurrent and future consumption, shaping the unique landscape of the CEQ  \nmethodology.  \nANNEX 2  \nEstimating the fiscal cost of tax expendituresin Ghana-data and methodology  \nVAT Expenditures  \nThe cost of VAT expenditures was estimated through the VAT Total Tax Liability (VTTL) model. The calculations were based on supply-use tables from Ghana Statistical Services for 2015, rescaled to match the VAT base as of 2021. The model takes in consumption data for households, government, and nonprofit institutions serving households (NPISH) and uses the effective VAT ratesand consumption values of each group of products and activities in the supplyuse tables to estimate overall liability for final consumption. For intermediate consumption and investment (gross fixed capital formation), the model takes into account non-deductible VAT and non-deductible investments.  \nThe 38 VAT expenditures in place as of 2021 were mostly exemptionson the supply of specific goods and services. In addition, VAT concessions are applicable to specific entities and persons: the President of Ghana, government-privileged persons, taxpayers granted benefits by parliament, special permit holders, the GIPC, and the GNPC. Moreover, the VAT Flat Rate Scheme (VFRS) allows approved traders to charge VAT at 3 percent instead of the standard rate (currently set at 15 percent), with simplified accounting and recordkeeping for traders without access to professional services for tax preparation. Since 2021, the VFRS is only available to companies with annual turnover between GHS 200,000 and GHS 500,000 .  \nExemptions that do not allow for the deduction of VAT on inputs create a hidden tax on final consumers. The inability to deduct VAT on the inputs for exempt supplies creates a cascading effect on the VAT applied at different stages ofthe value-add chain and reduces the forgone VAT revenue from such exemptions","cbCaianVEd9RZ026","https://ap.wps.com/l/cbCaianVEd9RZ026","pdf",324720,4,1,17,"English","en",105,"# Annexes\n## Commitment to Equity (CEQ) approach\n## Estimating the fiscal cost of VAT expenditures\n## Estimating the fiscal cost of PIT expenditures\n## Estimating the fiscal cost of import duty expenditures","[{\"question\":\"What data and updates are used in the CEQ microsimulation for Ghana?\",\"answer\":\"The CEQ results build on a microsimulation model using GLSS 7 (2016/17). Income and expenditure data and fiscal rules are updated to reflect 2023, with expenditure and incomes adjusted using sectoral growth rates and poverty lines adjusted for inflation.\"},{\"question\":\"How does the CEQ methodology derive different income concepts?\",\"answer\":\"It starts from disposable income equated to observed expenditures, subtracts transfers to obtain net market income, adds direct taxes and social security contributions to derive gross income, and then adjusts for pensions, transfers, and subsidies to compute market income, consumable income, and final income including in-kind government transfers.\"},{\"question\":\"How is the fiscal cost of VAT expenditures estimated?\",\"answer\":\"VAT expenditures are estimated using the VAT Total Tax Liability (VTTL) model. It uses Ghana Statistical Services supply-use tables for 2015 rescaled to match the VAT base as of 2021, combining household and institutional consumption data with effective VAT rates and accounting for non-deductible VAT in intermediate consumption and investment.\"}]","Ghana Public Finance Review - Volume 2 - Detailed Analysis - Annexes | PDF",1784477832,43,{"code":4,"msg":32,"data":33},"ok",{"site_id":25,"language":24,"slug":34,"title":13,"keywords":35,"description":14,"schema_data":36,"social_meta":87,"head_meta":89,"extra_data":91,"updated_unix":29},"ghana-public-finance-review-volume-2-detailed-analysis-annexes","",{"@graph":37,"@context":86},[38,54,69],{"@type":39,"itemListElement":40},"BreadcrumbList",[41,45,49,52],{"item":42,"name":43,"@type":44,"position":21},"https://docshare.wps.com","Home","ListItem",{"item":46,"name":47,"@type":44,"position":48},"https://docshare.wps.com/document/","Document",2,{"item":50,"name":12,"@type":44,"position":51},"https://docshare.wps.com/document/research-report/",3,{"item":53,"name":13,"@type":44,"position":20},"https://docshare.wps.com/document/ghana-public-finance-review-volume-2-detailed-analysis-annexes/109206/",{"url":53,"name":13,"@type":55,"author":56,"headline":13,"publisher":58,"fileFormat":61,"inLanguage":24,"description":14,"dateModified":62,"datePublished":63,"encodingFormat":61,"isAccessibleForFree":64,"interactionStatistic":65},"DigitalDocument",{"name":9,"@type":57},"Person",{"url":42,"name":59,"@type":60},"DocShare","Organization","application/pdf","2026-07-30","2026-07-19",true,{"@type":66,"interactionType":67,"userInteractionCount":20},"InteractionCounter",{"@type":68},"ViewAction",{"@type":70,"mainEntity":71},"FAQPage",[72,78,82],{"name":73,"@type":74,"acceptedAnswer":75},"What data and updates are used in the CEQ microsimulation for Ghana?","Question",{"text":76,"@type":77},"The CEQ results build on a microsimulation model using GLSS 7 (2016/17). Income and expenditure data and fiscal rules are updated to reflect 2023, with expenditure and incomes adjusted using sectoral growth rates and poverty lines adjusted for inflation.","Answer",{"name":79,"@type":74,"acceptedAnswer":80},"How does the CEQ methodology derive different income concepts?",{"text":81,"@type":77},"It starts from disposable income equated to observed expenditures, subtracts transfers to obtain net market income, adds direct taxes and social security contributions to derive gross income, and then adjusts for pensions, transfers, and subsidies to compute market income, consumable income, and final income including in-kind government transfers.",{"name":83,"@type":74,"acceptedAnswer":84},"How is the fiscal cost of VAT expenditures estimated?",{"text":85,"@type":77},"VAT expenditures are estimated using the VAT Total Tax Liability (VTTL) model. It uses Ghana Statistical Services supply-use tables for 2015 rescaled to match the VAT base as of 2021, combining household and institutional consumption data with effective VAT rates and accounting for non-deductible VAT in intermediate consumption and investment.","https://schema.org",{"og:url":53,"og:type":88,"og:title":13,"og:site_name":59,"og:description":14},"article",{"robots":90,"canonical":53},"index,follow",{"doc_id":7,"site_id":25},{"code":4,"msg":5,"data":93},[94,98,102,106,111,116,121,124,129,132,136],{"id":21,"doc_module":4,"doc_module_name":47,"category_name":95,"show_sort_weight":96,"slug":97},"Story & Novel",90,"story-novel",{"id":48,"doc_module":4,"doc_module_name":47,"category_name":99,"show_sort_weight":100,"slug":101},"Literature",80,"literature",{"id":20,"doc_module":4,"doc_module_name":47,"category_name":103,"show_sort_weight":104,"slug":105},"Exam",70,"exam",{"id":107,"doc_module":4,"doc_module_name":47,"category_name":108,"show_sort_weight":109,"slug":110},5,"Comic",60,"comic",{"id":112,"doc_module":4,"doc_module_name":47,"category_name":113,"show_sort_weight":114,"slug":115},6,"Technology",50,"technology",{"id":117,"doc_module":4,"doc_module_name":47,"category_name":118,"show_sort_weight":119,"slug":120},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":47,"category_name":12,"show_sort_weight":122,"slug":123},30,"research-report",{"id":125,"doc_module":4,"doc_module_name":47,"category_name":126,"show_sort_weight":127,"slug":128},9,"Religion & Spirituality",20,"religion-spirituality",{"id":127,"doc_module":4,"doc_module_name":47,"category_name":130,"show_sort_weight":127,"slug":131},"World Cup","world-cup",{"id":133,"doc_module":4,"doc_module_name":47,"category_name":134,"show_sort_weight":133,"slug":135},10,"Lifestyle","lifestyle",{"id":137,"doc_module":4,"doc_module_name":47,"category_name":138,"show_sort_weight":107,"slug":139},19,"General","general"]