According to Professor Yankah, the stress and difficulties private universities go through will be a thing of the past because government is taking steps to liberate them from the “oppression” they have suffered for so long.

He was speaking on Thursday during his send-off party as former Vice-Chancellor (VC) of the Central University College (CUC) at the New Senate Room, CU.

[contextly_sidebar id=”R7xKdGB8S24QWyTp34zXMLS4VxhxkgEg”]Professor Yankah observed that the attempt to set the private universities free “was a narrative that started whilst I was VC of the CUC”, adding that, “the experiences I went through were the experiences of all private universities in Ghana, and so if I got the opportunity to be there, I should make a move that would be of importance and significance not just to CUC but to liberate all private universities from oppression.”

He reiterated government’s commitment to helping private tertiary education by offering  a 25% tax waiver to private universities saying “that waiver is one of the things that started right here when I was VC, and we pursued it vigorously.”

The Chancellor of the CUC, Dr. Mensa Otabil, thanked Professor Yankah for his service to the university, saying “he is a man of peace, a gentleman, a man I deeply enjoyed working with.”

He reminisced on their working relationship by saying “the plans we hatched, and how we waited through many difficulties in the light of this university, managing important decisions affecting student, faculty, and staff life, and prayed through the frustrating process of acquiring a charter.”

The VC of the CUC, Professor Bill Buenar Puplampu, in appreciating the work of the former VC, observed the many achievements Professor Yankah chalked whilst with the CUC.

Among other things, he noted his role in instituting the Distinguish Lecture series that brought some significant people to the CUC podium, and the establishment of a Faculty Colloquia which helped galvanized research in the university.

Professor Puplampu also told of Professor Yankah’s role in launching a radio station for the School of Communication Studies of the CUC, and overseeing the review of the status of the University and its human resource situation.

He credited Professor Yankah with the opening of the Kumasi campus of the school and the construction of a befitting main gate for the Miotso campus and the acquiring of a presidential charter which made the CUC an independent institution.

As part of the CUC’s appreciation for the work done by Professor Yankah, he was immortalized into the school’s history after a block at the Miotso campus was named after him.

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Source: GNA

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One of the signs of this danger is in the unused capacity within the private tertiary sector, the Minister noted on the Citi Breakfast Show.

[contextly_sidebar id=”3IKfWDtnAU5WZu5WPXRoaiOXURNwka91″]There are about 75 private universities operating in Ghana, but they have to contend with just about 20 percent of the market share.

“The smaller number, being the state-owned [universities], have a bigger share of the student enrollment. They have about an 80 percent share as against what the private universities have. They have only about an 18 to 20 percent share… Many of the private universities are in danger of collapse and I must say that there are signs in various parts of various private universities.”

He cited the straitjacket on the grade cut-off points set up by the government as one of the causes of this problem.

“We have for several years now been deluding ourselves into thinking that that below C6, that is those who get D7, E8 and so on, are not qualified to enter university. I think we should begin revising our ideas.”

“For many private universities and public universities in general, admissions are declining… [There is] higher competition, there are many new universities sprouting every day of the week and so on and so forth. So for the same resources and the same pool of potential applicants, we have many many more [schools],” Prof. Yankah explained.

Role of tax breaks

In 2017, the government announced that privately-owned universities were granted tax reliefs, and will no longer be required to pay the 25 percent corporate income tax.

Prof. Yankah explained that “the real reason for that is to allow the private universities to expand so they can reinvest any money they make.”

He however said the government was not going to interfere in the pricing of school fees, which could potentially lead to an increase in admissions of private schools.

According to him, “competition will drive that [school fees] down automatically… we cannot dictate to a private entity what they must charge.”

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By: Delali Adogla-Bessa/citifmonline.com/Ghana

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“It is something that is great for all private universities, great in the sense that it will give us resources to infuse into our programmes and capital expenditure, ” he said.

The government announced that privately-owned universities will be granted the reliefs, enabling them to thrive and admit more students.

Making the announcement in the 2018 budget,  read in Parliament on Wednesday, November 15, Finance Minister, Ken Ofori-Atta, revealed that the private institutions will no longer be required to pay corporate income tax.

Speaking to Citi News,  Dr. Kwarteng said this move by government will go a long way to help private universities and benefit the country at large, describing it as a step in the right direction.

“At the end of the day, with the social entrepreneurship that we are doing in the private universities , educating Ghanaians rebounds to the benefit of the larger Ghanaian society. So if the government deems it fit not to take the 25% back, let us retain it and use it in what we are doing to complement public sector tertiary education, it’s a good first step,” he added.

Other reactions

According to the Finance Minister, investing in the country’s private educational institutions would significantly boost the reputation of the sector, potentially making the country an attractive destination for investors.

“The education sector represents a high growth potential with multiplier effects on the economy as confirmed by a recent “Country Private Sector Diagnostic” study by the World Bank Group. This is borne out by the rapid growth in privately-owned and managed universities as well as in the inward flow of students from the West Africa sub-region,” he said.

But the Director of the Centre for Budget Advocacy Ghana, Vitus Azeem, believes the Akufo-Addo administration’s aim to make Ghana self-sufficient will be better served by increasing corporate tax significantly.

Mr. Azeem urged the government to spread its tax net instead of exempting more people from paying income tax.

“One example I have been very much against is private universities. Can you imagine somebody saying that corporate tax on private universities is a nuisance tax because they are contributing to the development of the country?”

“The driver who drives a government car takes a salary of less than GHc 100 and is taxed. A nurse and doctor who save lives are taxed. They are contributing to the development of a country. So if a private university is making profits, why should it be exempted them from tax,” Mr. Azeem argued.

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By: Hafiz Tijani & Ann-Shirley Ziwu/citifmonline.com/Ghana

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Making the announcement in the 2018 budget read in Parliament today, [Wednesday], November 15,  Finance Minister, Ken Ofori-Atta, revealed that the private institutions will no longer be required to pay corporate income tax.

[contextly_sidebar id=”rdAFcYklTeJSTFc3NqyPUaJ98ADVifJK”]According to the Minister, investing in the country’s private educational institutions would significantly boost the reputation of the sector, potentially making the country an attractive destination for investors.

“The education sector represents a high growth potential with multiplier effects on the economy as confirmed by a recent “Country Private Sector Diagnostic” study by the World Bank Group. This is borne out by the rapid growth in privately-owned and managed universities as well as in the inward flow of students from the West Africa sub-region,” he said.

The government believes that, giving the institutions tax breaks will enable them focus on improving and maintaining their facilities in order to attract more students from all over the continent.

“It is government’s intention to support the sector in order to position Ghana as the premier higher education hub of the sub-region and to attract critical foreign direct investment into the sector. In view of this, and also as part of government’s strategy for the long-term development of a local human capital base fit for a changing world, we will grant relief from corporate income tax paid by privately-owned and managed universities to the extent that profits are ploughed back to expand or maintain facilities.”

Following complaints by private Senior High School owners to the effect that they are losing their investments due to the implementation of the free SHS policy, which has led to low admissions, the Finance Minister said ” We would also work to do the same for privately owned SHS in the near future.”

Incentives for young entrepreneurs

The New Patriotic Party (NPP) administration has consistently indicated its commitment towards supporting young business owners.

President Nana Addo Dankwa Akufo-Addo earlier in July set up a 100 million dollar package to fund the National Entrepreneurship and Innovation Plan (NEIP).

Young entrepreneurs to get tax holidays

The government has given another strong indication by revealing that young Ghanaian business owners, will be granted tax holidays of up to five years based on the number of people they employ.

“As a further commitment to creating a supportive ecosystem for young Ghanaian entrepreneurs of age 35 years and below who start their own businesses, government will, through the National Entrepreneurship and Innovation Plan (NEIP), grant tax holidays based on the number of persons employed by a start-up or early-stage business,” he said.

“A preferential tax rate of between 3 to 5 years will be granted after the tax holiday. They will also be allowed to carry forward losses for five years.”

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By: Edwin Kwakofi/citifmonline.com/Ghana

The post #GHBudget: Gov’t announces tax reliefs for private universities appeared first on Citi 97.3 FM - Relevant Radio. Always.