Government as part of its efforts to lessen the adverse effects of the coronavirus pandemic on companies and recovery the economy from the COVID-19 induced setback has granted tax breaks to companies within the arts, entertainment and hospitality sector.
Minister for Parliamentary Affairs and interim Finance Minister Osei Kyei-Mensah-Bonsu made this known during the 2021 budget statement and economic policy presentation in Parliament on Friday March 12, 2021.
According to him, it is important to provide companies within these sectors the needed tax exemptions to cushion them against the economic effects of the COVID-19 global pandemic.
He said this forms part of the government’s broader economic recovery plan to get the Ghanaian economy back to its previous state.
He said government will “provide Corporate Income Tax rebate of 30% to companies hard hit by Covid-19 pandemic for Quarter 2 to Quarter 4 of 2021. Targeted companies include those in the accommodation and food services, Education, Arts and Entertainment, and Travel and Tour operators.”
However, the Minister assured that the tax exemptions given to these companies will not in any way derail government’s revenue mobilization for the 2021 fiscal year. He said government has deployed creative revenue mobilization strategies in the medium-term that will help increase the country’s revenue streams.
“In the medium-term, we will pursue revenue-enhancing measures with a focus on deepening our digitalisation agenda both on transactions on goods and services as well as on the tax collection machinery as part of measures to broaden the tax base and rope in a lot more eligible taxpayers into the tax net. Expenditures will be rationalized through the implementation of tighter expenditure control systems with a more efficient procurement system to ensure value for money. We will also pursue structural reforms in public finance management system to improve efficiency in public service delivery,” he noted.