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.
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.
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.
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