Deputy Finance Minister Kwaku Kwarteng has hinted of the rationalization of tax exemptions to improve and boost government’s domestic revenue mobilization.
He indicated that government intends to target specific sectors of the economy and that businesses wanting to be involved in the ‘One district One Factory’ program will benefit from tax exemptions.
He said, “We will not cancel the exemption but we will rationalize the exemptions. We will rationalize the exemptions to take out those exemptions that in our respectful opinion, are counterproductive”.
“Even where businesses are big and are investing in the economy, we should not grant exemption for big investors because they have applied for it or because they have invested beyond a certain threshold, that appears to be the current practice especially in respect of GIPC exemptions. We are looking to target specific sectors of the economy. Exemptions administration within the reforms is going to target specific areas where government considers that economic activity must grow in those areas.”
He added that the reforms being introduced to the tax exemptions in Ghana will benefit the economy.
The deputy minister who was speaking at the 2nd Quarter Edition of the 2019 GIPC ‘Ghana on the Go’ CEO’s Breakfast Meeting urged Ghanaians and businesses to be compliant on their taxes.
Director and Partner at PricewaterhouseCoopers Abeiku Gyan-Quansah also urged the parliament of Ghana to pass the tax exemption bill which was laid before the house to streamline tax exemptions.
He said that the tax exemption bill before the Finance Committee in parliament, will help minimize its abuse should the bill be passed into act.
“We plead with the finance committee in parliament not to cause the nation another 500 million but please pass the exemption bill into act.”
He further stated that an exemption impact report should be made available by government for review.
“As part of the budget preparation process government should also submit to us to review if we agree on an exemption impact report. We need to encourage GRA to be a lot more effective in monitoring their abuses within that area,” he said.
