Budget 2017: Government removes tax imposed on 'Kayayei'

Budget 2017: Government removes tax imposed on 'Kayayei'

The 1% market tolls that had been placed on 'Kayayei' (porters) has been scrapped by government in fulfillment of the New Patriotic Party's 2016 campaign promises of tax cuts.

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For years, head porters, or Kayayei as they best known and market women have had to pay 1% of their daily earnings to the state.

2017 Budget: Government scraps tax on 'Kayayei'

Kayayei during an NPP rally last year

READ ALSO: New 5 cedi notes hits Ghanaian market on March 7

During their campaign prior to the 2016 elections, the NPP promised to cut the market taxes placed on market traders; a promise that earned them massive support from the market women.

Ken Offori-Atta the finance minister, while presenting the 2017 budget to parliament on March 2, said the budget seeks to ' build a strong fiscal foundation for the Ghanaian economy.'

According to him, budget spending will be monitored, and wasteful public spending will not be excused.

Offori-Atta also said as part of efforts to control budget spending, and protect state funds, government will cut down on tax exemptions, while widening the tax base.

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Based off a Starr FM report, below are some tax reforms that government has implemented:

The 1 % Special Import Levy – ABOLISHED

Kayayei Market Tolls – ABOLISHED

17.5 % VAT/NHIL on financial services – ABOLISHED

17.5 % VAT/NHIL on selected imported medicines, that are not produced locally – ABOLISHED

17.5 % VAT/NHIL on domestic airline tickets – ABOLISHED

5 % VAT/NHIL on Real Estate sales – ABOLISHED

Replaced 17.5% VAT/NHIL with 3 % flat rate for traders

Tax credits and other incentives for businesses that hire young graduates from tertiary institutions

Tax Incentives for Young Entrepreneurs

Duty on imported Spare parts Abolished

Corporate Income Tax to be progressively reduced from 25% to 20% in 2018

READ ALSO: Who are you to dismiss me?- E.T Mensah slams NDC regional organizer

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Source: Yen.com.gh

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