Suspension of 5% capital gain tax to attract potential investors – GSE MD

Managing Director of the Ghana Stock Exchange, GSE, Ekow Afedzie has welcomed government's decision to withdraw the 5.0 percent capital gain tax on profit made by investors on the capital market.

His comments come after the Minister for Parliamentary Affairs, Osei Kyei-Mensah-Bonsu announced the decision to permanently exempt listed securities from capital gain tax payments as contained in government's 2021 budget statement.

The GSE MD believes the move is a game changer for the growth of the stock market which could attract more potential investors into the country.

“As I indicated earlier, this is a very welcoming news to us and we as managers of the stock market are very grateful to the government for such a bold decision.”

“I believe it will be a game changer for the growth of the market and many investors will be encouraged to come onto the market. This has been a practice in other countries and it has attracted many businesses as well,” Afedzie told Accra-based Joy Business.

Ekow Afedzie further pointed out that the suspension of the capital gain tax would energize more entrepreneurs to make investments on the capital market and the stock exchange.