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Pension Contributions Decline In 1st Quarter

A RECENT Financial institution of Ghana report on the actual sector of Ghana’s economic system says employment circumstances as measured by the full variety of SSNIT pension contributors (each private and non-private sector) declined within the first quarter of this yr, in comparison with the same interval in 2019.

It stated the full variety of contributors declined to 874,899 (down by 37.6% year-on-year) in March 2020 in contrast with 1,401,952 for the same interval in 2019.

Whole personal sector staff’ contribution to the SSNIT Pension Scheme (Tier-1) went up by 9.eight per cent in year-on-year phrases to GH¢180.73 million in March 2020 from GH¢164.60 million collected throughout the corresponding interval in 2019.

Compared with February 2020, it stated personal sector staff’ contribution declined by 25.6 per cent. Nonetheless, for the primary quarter of 2020, the contribution grew by 24.eight per cent to GH¢610.81 million relative to GH¢489.43 million recorded in the identical interval in 2019.

Manufacturing

The report continued that actions within the manufacturing subsector, measured by traits within the assortment of direct taxes and personal sector staff’ contributions to the SSNIT Pension Scheme (Tier-1), recorded blended efficiency throughout March 2020.

Whole direct taxes collected decreased by 46.5 per cent (year-on-year) to GH¢1,087.24 million in March 2020, relative to GH¢2,031.79 million recorded in the same interval in 2019. Cumulatively, whole direct taxes collected for the primary quarter of 2020 declined by 4.9 per cent to GH¢4,113.91 million, from GH¢4,325.59 million for a similar interval in 2019. By way of relative contributions of the varied sub-tax classes, Earnings tax (P.A.Y.E and self-employed) accounted for 53.7 per cent, Company tax (40%) and “different tax sources” (6.3%).

Client Spending

It additionally acknowledged that client spending, proxied by home VAT collections and retail gross sales, recorded blended efficiency in March 2020, in comparison with the corresponding interval in 2019, including that home VAT collections declined by 19.7 per cent on a year-on-year foundation to GH¢319.81 million from GH¢398.10 million.

“On a month-on-month foundation, Home VAT dipped by 27.1 per cent in March 2020 from GH¢438.60 million within the previous month. The noticed decline in home VAT collections was partly on account of decreased client demand throughout the evaluate interval.

“Nonetheless, cumulatively, whole home VAT for the primary quarter of 2020 marginally went up by 4.5 per cent to GH¢1,182.25 million in contrast with GH¢1,131.40 million for the corresponding interval of final yr. Retail gross sales, however, elevated by 53.7 per cent (year-on-year) to GH¢93.55 million in March 2020, up from the GH¢60.88 million recorded in the identical interval in 2019. In comparison with February 2020, retail gross sales grew by 30.Three per cent. Cumulatively, for the primary quarter of 2020, retail gross sales went up by 39.9 per cent to GH¢236.85 million from GH¢169.34 million for a similar interval in 2019,” it acknowledged.

The report stated the relative enchancment in retail gross sales was largely because of the widespread panic shopping for simply earlier than implementation of the Covid-19 partial lockdown on March 30, 2020.