Stock market analysts are predicting a rebound of the local bourse and the bonds market with an eventual scrapping of the capital gains tax.<\/p>\n
[contextly_sidebar id=”aTHga0d47r5CjtUNke2WQmV7CXp0N6Il”]They contend that the move should attract investors to Ghana following a likely increase in the US Fed rate.<\/p>\n
According to a Research Analyst with First Banc Financial Services, Benjamin Amoah-Adjei, recent economic trends like declining inflation should culminate in increased activities on the capital market.<\/p>\n
\u201cIf the capital gains tax is scrapped it will give investors an incentive to put their money in the Ghanaian market rather than sending them to the European or American markets,\u201d he told Citi Business News at the sidelines of First Banc\u2019s breakfast meeting to discuss recent developments of the capital market.<\/p>\n
Finance Minister, Ken Ofori Atta has hinted that the 2017 budget will review some taxes on the capital market.<\/p>\n
Also a renowned industry player in the capital market, Mr. Ofori Atta argues that the high taxes have had contributed to the stifled growth of the capital market.<\/p>\n
Similarly, managers of the Ghana Stock Exchange (GSE) have blamed the 15 percent capital gains tax for the worse performance of the Ghana Stock Exchange for almost three years in a row.<\/p>\n
According to them, the lower or no taxes on capital gains across the sub-region and continent continues to drive investors to such markets other than Ghana.<\/p>\n
Benjamin Amoah-Adjei however tells Citi Business News<\/strong> industry watchers are confident of a turnaround with the fulfillment of the government\u2019s plan.<\/p>\n \u201cIt is very important because it comes at a time when we are expecting interest rates in the US to rise. Whenever interest rates are high in the US, people move their monies here. If we need to compete effectively with the high interest rates in the US, we need to give people incentives and the capital gains tax was one of such as it gave people an incentive to deposit their monies here.\u201d<\/p>\n Though he wouldn\u2019t readily disclose how soon the policy could be implemented, Mr. Amoah-Adjei was highly expectant that the budget would be emphatic on any decision taken by government on the issue.<\/p>\n \u201cI am actually hoping that the budget reading next week should mention that,\u201d he remarked.<\/p>\n The First Banc Breakfast meeting was attended by customers, regulators and allied industry players.<\/p>\n It focused mainly on how fund managers could capitalize on the prospects of the market and invest their respective Tier 2 or 3 pension contributions.<\/p>\n –<\/p>\n By: Pius Amihere Eduku\/citibusinessnews.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":" Stock market analysts are predicting a rebound of the local bourse and the bonds market with an eventual scrapping of the capital gains tax. [contextly_sidebar id=”aTHga0d47r5CjtUNke2WQmV7CXp0N6Il”]They contend that the move should attract investors to Ghana following a likely increase in the US Fed rate. According to a Research Analyst with First Banc Financial Services, Benjamin […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[121,32,171,11],"tags":[],"yoast_head":"\n