Businesses are likely to experience some tax cuts and in some cases total scrap in 2017 following the coming on board of a new regime.
During his campaign, the President-elect, Nana Akufo- Addo as well as his running mate Dr. Mahamudu Bawumia asserted that they will embark on a number of tax reforms when elected into power.
Some economists have however asserted the tax cuts and reduction which are also contained in the NPP’s manifesto will be impossible while others are optimistic they are achievable.
Five taxes are expected to be totally scraped while five others are to be reviewed downwards.
The Special Import Levy is to be abolished.
The 17.5% VAT on imported medicines not produced in the country as well as the 17.5% VAT on Financial Services are also expected to be abolished.
Another tax expected to be cut are the 17.5% VAT on domestic airline tickets as well as the 5% VAT on Real Estate sales.
Import duties on raw materials and machinery for production within the context of the ECOWAS Common External Tariff (CET) Protocol are also to be removed .
Meanwhile corporate tax rate is to be reduced from 25% to 20%.
VAT for micro and small enterprises are also to be reviewed from the current 17.5% to the 3% Flat Rate VAT.
Other tax reforms that are expected to be experienced include an introduction of tax credits and other incentives for businesses that hire young graduates from tertiary institutions as well as a review of the withholding taxes imposed on various sectors including the mining sector.
By: Vivian Kai Lokko/citibusinessnews.com/Ghana