The Hospitality industry is set to receive a boost in the tourism sector in 2012. This was disclosed during the reading of the 2012 budget statement by finance Minister Dr. Kwabena Duffour.
It will be recalled that in the 2011 Budget, Government repealed LI 1817, which empowered the Ghana Investment Promotion Centre (GIPC) to grant tax exemptions to the Hotel and Hospitality Industries.
Government has completed the review of the relevant incentives granted under LI 1817 and, from next year, will incorporate them into the Internal Revenue Act 2000, (Act 592), which will be managed by the Ghana Revenue Authority (GRA). The full list of the incentives will be published by the GRA in due course. To further boost the hotel and hospitality sub-sectors and to show commitment to this sector, the government has decided to reduce the sector’s corporate tax rate from 22 per cent to 20 per cent.
Industry experts, hoteliers and restaurateurs have welcomed the restoration of LI 1817 and are optimistic it will help the tourism sector. They however preferred more incentives for the sub sector.
In a related development, the Kotoka International Airport (KIA) is set to receive a major facelift in infrastructure as the KIA is enjoying some huge traffic of airlines to the country.
SOURCE: GTA
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