The Finance Minister Ken Ofori Atta has disclosed that government will abolish levies imposed on ‘kayeyei’, domestic airline tickets, spare parts, special import and others.
Reading the 2017 budget in Parliament on Thursday, the minister explained that taxes introduced over the years have proven to be nuisance taxes.
He added that the taxes have been abolished to improve the business environment.
‘Mr. Speaker, a number of tax measures have been introduced in recent years in an attempt to deal with revenue shortfalls. Some have proven to be nuisance taxes.
They have low revenue yielding potential and at the same time impose significant burden on the private sector and on the average Ghanaian. As part of our commitment to re-energize the private sector, Government has decided to review these taxes to provide relief for businesses. The following specific measures shall be implemented in the short to medium term:
abolish the 1percent Special Import Levy;
abolish the 17.5percent VAT/NHIL on financial services
abolish the 17.5percent VAT/NHIL on selected imported
medicines, that are not produced locally;
initiate steps to remove import duties on raw materials and
abolish the 17.5percent VAT/NHIL on domestic airline tickets;
abolish the 5percent VAT/NHIL on Real Estate sales;
abolish excise duty on petroleum;
reduce special petroleum tax rate from 17.5percent to 15percent
abolish duty on the importation of spare parts;
abolish levies imposed on kayayei by local authorities;
exempt from taxation, the gains from realization 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 5percent to 3percent;
reduce Public Lighting Levy from 5percent to 2percent;
replace the 17.5VAT/NHIL rate with a flat rate of 3percent for traders; and implement tax credits and other incentives for businesses
that hire young graduates’.