President Nana Akufo-Addo through his finance minister has given Ghanaians and the business community some relief following the announcement of the abolishment of key taxes and in some cases a downward review.
Delivering the 2017 budget statement, Thursday, Finance Minister, Ken Ofori Atta in detailing government expenditure and revenue generation plan for the year outline over 10 taxes that will be abolished.
He also touched on taxes that have been reviewed downward.
The abolished taxes is expected to cushion and make life comfortable for businessmen, real estate industry, aviation and above all the average Ghanaian.
Below is a list of abolished and reviewed taxes Finance Minister announced:
– 5 percent VAT/NHIL on Real Estate sales
– Excise duty on petroleum
– Special petroleum tax rate from 17.5 percent to 15 percent
– Duty on the importation of spare parts
– Levies imposed on kayayei by local authorities
– Taxation, the gains from realisation of securities listed on the Ghana Stock Exchange or publicly held securities approved by the Securities and Exchange Commission (SEC)
– 1 percent Special Import Levy
– 17.5 percent VAT/NHIL on financial services
– 17.5 percent VAT/NHIL on selected imported medicines, that are not produced locally
– Initiate steps to remove import duties on raw materials and machinery for production within the context of the ECOWAS Common External Tariff (CET) Protocol
– 17.5 percent VAT/NHIL on domestic airline tickets
Taxes that were reviewed downed included:
– Replace the 17.5 VAT/NHIL rate with a flat rate of 3% for traders
– Implement tax credits and other incentives for businesses that hire young graduates
– Reduce Public Lighting Levy from 5 percent to 2 percent
– Reduce National Electrification Scheme Levy from 5 percent to 3 percent