Pulse.com.gh logo
Go


2016 budget: Govt to revoke tax exemptions to businesses

This is because the finance ministry is looking at reviewing these tax exemptions as part of the 2016 budget.

  • Published: , Refreshed:

MyJoyOnline - Businesses should brace themselves in 2016 as they would be required to pay for some taxes that they are currently being exempted from.

This is because the finance ministry is looking at reviewing these tax exemptions as part of the 2016 budget. 

According to analysts, the country loses millions of dollars every year in revenue because of exemptions granted to some businesses. 

However with the current challenges facing the economy there is pressure on government by its development partners to review these exemptions.

The country has been facing declines in its export earnings.

The removal of tax exemptions is also to improve revenue collections to help take care of rising expenditure.

Joy Business is learning that some of the areas that not enjoy the tax exemptions from next year include operations of free zones companies.

This means these companies will have to set aside about 25 percent of their profits – from the current 8% -- as taxes to be paid to the state.

Also tax exemptions on raw materials and imported products are expected to be reviewed in the 2016 budget.

Government is also looking at taking away the power given to parliament and the Ghana Investment Promotion Center  (GIPC) to grant tax exemptions to businesses and other state institutions.

This should mean that the finance ministry will hold the sole power to grant exemptions, where it becomes necessary to do so.

However there are fears that the decision to remove tax exemptions might increase the cost of production  for some firms, a development that could also result in prices of goods and services going up.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
2 Salaries In 2018 Here are the dates public workers will be paid in 2018bullet
3 Education Top 5 private high schools in Ghana according to WAECbullet
4 Breaking Otabil finally breaks silence on banking controversiesbullet
5 Tax Policy Gov't weighs in on controversial MoMo taxbullet
6 Incompetence Otabil wasn't qualified to be Capital Bank Board...bullet
7 Banking Crises Joe Jackson urges BoG to ‘rate’ banks to...bullet
8 Promo Glo introduces Yakata, Ghana’s most exciting...bullet
9 Mutual funds in Ghana Top 5 mutual funds in Ghanabullet
10 uniBank Takeover Meet all the Unibank Executives who...bullet

Top Videos

1 Forbes 2018 Africa's billionaires rich listbullet
2 Money Alert Meet Africa's richest womanbullet
3 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
4 Former Capital Bank staff grills pork for survivalbullet
5 Support Finance minister buys Kantanka carbullet
6 Bozoma Saint John 10 quotes from Uber top official, Bozoma,...bullet
7 Plane Crash Starbow suspends operations following plane crashbullet
8 Video We are determined to move Ghana beyond aid - Bawumiabullet
9 Dr Joseph Siaw Agyepong Nobody can collapse my company –...bullet

Business