an   increase   in   operational   income   to   individuals   and   enterprises   thus   allowing   for   more   investments.   5.18   HIGH  CORPORATE  TAX   5.18.1   Undertake  Regulatory  Impact  Assessment  to  Evaluate  Impact  on  Industries  and     Review  Tax  Accordingly   The  corporate  tax  has  been  reduced  to  25%  and  this  was  addressed  in  the  2006  budget.  The  L.I.   1830  was  passed  which  saw  the  Corporate  Tax  reduced  from  28%  to  25%.  The  corporate  tax  is   now  the  same  for  both  listed  and  unlisted  companies.  The  IRS  undertook  tax  awareness  and  tax   compliance  campaigns  to  educate  the  business  community  on  the  new  corporate  tax  rate.   The   IRS   felt   that   this   tax   rate   could   result   in   an   increase   in   the   operational   income   of   corporate   organizations   thus   allowing   for   more   investments,   increased   employment   and   enhance   direct   tax   revenue.   However,   the   IRS   felt   that   the   reduction   could   result   in   a   loss   of   revenue   as   Corporate  Tax  contributes  about  50%  to  the  total  direct  tax  revenue.  This  could  be  countered   by  intensifying  tax  enforcement  and  compliance  strategies.   5.19   VAT  ON  IMPORTED  INPUTS  FOR  MANUFACTURING   5.19.1   Undertake  Regulatory  Impact  Assessment  to  Evaluate  Impact  on  Industries  and     Review  Tax  Accordingly   The   Value   Added   Tax   (VAT)   Secretariat   and   the   MoFEP   note   that   pharmaceuticals   enjoy   a   favourable   tax   policy   as   tax   on   their   manufactured   products   is   zero   rated.   However,   a   review   has  been  conducted  and  has  been  discussed  by  the  Finance  Committee  in  Parliament  with  no   objections.   5.20   TAX  STAMP   5.20.1   Undertake  Regulatory  Impact  Assessment  of  Tax  Stamp  to  Evaluate  Impact  on  Micro   and  Small  Enterprises  in  Different  Administrative  Regions  and  Review  Tax  Stamp   Accordingly   The  Tax  Stamp  has  been  reviewed  and  re-­‐categorised  to  reflect  the  class  of  the  business.  The   highest   category   is   GH¢15.00   and   the   lowest   category   GH¢3.00.   Previously,   the   levels   were   117