The Nana Akufo-Addo led government has said it intends to implement tax cuts that were promised on campaign during the run up to the 2016 general elections.
There's been mixed reports about the strength of the economy that the Akufo Addo led government has inherited. Some have said that the economy is robust, while others across the political divide have lamented that the economy the New Patriotic Party government have inherited from their predecessors is an ailing one.
This uncertainty, it seems, will affect the government plans to implement tax cuts President Akufo-Addo promised the Ghanaian populace. Although government says it intends to implement the promised tax cuts, it intends to do so cautiously in light of the deficits it says were inherited from the previous administration.
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According to Finance Minister-designate, Ken Ofori Atta, the government will carefully scrutinize the intended tax cuts and elaborate the way forward in the 2017 budget, which will be presented to parliament in March.
“The tax cuts will be signaled strongly in the first budget and with the type of deficit you have, we clearly will have to be cautious about it. But in terms of the trajectory object, certainly even in this first budget, certain number of taxes will be eliminated,” Mr Ofori-Atta told the media at an economic meeting between Ghanaian businesses and their Moroccan counterparts in Accra.
Among the tax cuts President Akufo-Addo promised were his promise to cut the 17.5 percent VAT on financial services and domestice airline tickets, and reduce coporate income tax from 25 percent to 20. Mr. Ofori Atta is reported to have said that the tax cuts would boost investments in Ghana.
“…We are enumerating the number of taxes we promised in the manifesto and then phase them in. But as I mentioned, the need to attract investment is key and so those will also be looked at very seriously.”