The government of Ghana has announced that it will be breaking all companies within the entertainment, arts, and hospitality sector from paying taxes as part of its intention to lessen the adverse of the outbreak of the deadly virus.
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This revelation was made by the Minister of Parliamentary Affairs and Interim Finance Minister, Osei-Kyei Mensah Bonsu.
During the 2021 budget statement and economic policy presentation in Parliament on Friday, March 12, 2021, he said that the aim of the government is to lessen and cushion these companies from the losses they have made since the outbreak of the Coronavirus while recovering the economy from its setback.
He further added that the government is willing to 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.”
The Minister assured, however, that the tax breaks given to these businesses will not jeopardize the government’s revenue mobilization plans for the fiscal year 2021. In the medium term, he said, the government has implemented innovative revenue mobilization strategies that will help boost the country’s revenue streams.
“In the medium-term, we will pursue revenue-enhancing measures with a focus on deepening our digitalization 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 the public finance management system to improve efficiency in public service delivery,” he noted.
