Government in responding to requests by industry players and businesses has outlined major tax cuts as well as other incentives to boost local production and private sector development.
Finance Minister Seth Terkper in presenting the 2017 Budget and Economic Statement Thursday, March 2, said the Akufo-Addo led administration has resolved to cut down and eliminate some taxes to support private sector development and improve the business environment.
“As part of our commitment to re-energize the private sector, government has decided as pledged to review these taxes to provide relief for businesses. Mr Speaker, the following specific measures shall be implemented in the short to medium term.
*This Budget, will abolish the 1% Special Import Levy
*Abolish 17.5% VAT on financial Services
*Abolish the 17.5% VAT on Selected Imported Medicines that are not produced locally
*Initiate steps to remove import duties on raw materials and machinery within the context of Ecowas and Common External Tariff Protocol
*We will abolish the 17.5% of Domestic Airline tickets
*We will abolish the 5% VAT on Real Estates Sales
Earlier the Association of Ghana Industries (AGI), said it anticipates among others a reduction in the numerous tax charges currently levied on businesses.
“There are a number of taxes that AGI considers as nuisance and there are others too that we think that when they are done away with it will boost the production capacity of our businesses…if you remove the 5% import duty on raw materials we will definitely be competitive as industries and for that matter, it will be able to promote exports,” President of the Association James Asare Adjei, observed.
An infograph of Government’s tax Reliefs