Gov’t must adopt tax credit scheme for multinationals - IMANI

Government has been advised to consider the adoption of a tax credit scheme for multinationals especially in rural communities to enable the companies contribute meaningfully to the socio-economic development of the area.

The Executive Director of IMANI Ghana, Franklin Cudjoe underscored the importance of tax the credit scheme and emphasized it had been successfully rolled out in Papua New Guinea for socio-economic development.

He stressed that Ghana could learn from such fine example in the country and roll out a similar scheme, adding that it would work better than the establishment of Development Funds.

Mr. Cudjoe expressed dissatisfaction that such Development Funds including Media Fund, Road Fund, Trust Fund and Ghana Education Trust Fund (GETFund) had not effectively addressed the purpose for which they were established adding that the funds could not be properly monitored and accounted for.

Tax Credit Scheme had been described as the amount of money that a tax payer is able to subtract from the amount of tax that he or she owes the government.

The value of tax credit depends on what the credit being provided and certain types of tax credits granted to individuals for businesses in specific locations, classification or industries.