EIGHT TAXES ABOLISHED,FOUR OTHERS REDUCED

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Finance Minister Ken Ofori-Atta has presented the first budget of the governing New Patriotic Party (NPP) to Parliament, Thursday at a time when there are high expectations.

Presenting the 2017 Budget, dubbed ‘Asempa Budget’ on the floor of Parliament on Thursday, the Finance Minister said the government has decided to abolish eight taxes and reduce four others, many of which were introduced by the previous government.

According to him, many of the taxes were nuisance taxes, the removal of which will ease the difficulties they imposed on Ghanaians.

He explained the measures will help drive the job creation agenda of government, lessen hardship of Ghanaians and secure a business-friendly environment in the country.

Reading the first budget of the new government in Parliament Thursday, the Minister said despite the doubts of political opponents, the New Patriotic Party (NPP) government is committed to following through with its 2016 campaign promises.

President Akufo Addo  promised to make secondary education by making it free, reducing taxes that affect the growth of businesses,one district one factory, allocate $1 million to all the constituencies to fight poverty, and one village one dam in the Northern Region.

 

The taxes the Minister listed to be abolished and reduced include;

(a) Abolish one percent special import levy,

(b) Abolish 17.5 VAT on financial sevices

(c) Abolish 17.5% VAT on selected imported medicines

(d) Initiate steps to remove import duties on raw materials and machinery

(e) Abolish 17.5 VAT on domestic airline tickets

(f) Abolish 5% VAT on real estates

(g) Abolish excise duty on petroleum

(h) Reduce special petroluem tax rate from 17.5% to 15%

(i) Abolish duties on importation of spare parts.

(j) Abolish levies imposed on Kayayei’s by local authorities

(k) Replace the 17.5 VAT on Ghana Stock Exchange (GSE) traders to a flat rate of 3.5 percent

(l) Reduce National Electrification levy

Many of these taxes were set by former President John Mahama’s government to fill the revenue shortfall in the country.

source:radiooneghana.com/Agyapong Michael