The business community in Ghana will heave a sigh of relief following government’s announcement of key taxes it has abolished, while others have been reviewed.
The cancellation of the taxes, most of which affects businesses in the aviation, finance and real estate industries, are aimed at providing a friendly environment for businesses in the country.
Below is the list of taxes that have been abolished and reviewed by the government.
– 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;
– 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);
– Reduce National Electrification Scheme Levy from 5 percent to 3 percent;
– Reduce Public Lighting Levy from 5 percent to 2 percent;
– Replace the 17.5 VAT/NHIL rate with a flat rate of 3 percent for traders; and
– Implement tax credits and other incentives for businesses that hire young graduates.