GSE appeals for tax exemptions

quist

August 20, 2015 3:35 PM

" At the moment, taxes being charged on transactions pertaining to enlistment and others have become a disincentive for many local companies."

Some businesses and professional associations are making proposals for tax exemptions in the 2016 budget consultative workshops being orgnanized by the Ministry of Finance.

Annually, the Ministry of Finance conduct consultative workshops with stakeholders across the economy to get inputs into the following year's budget and financial statment which is compiled and released in November.

Companies and institutions, like the Ghana Stock Exchange have been making a case for investment proceeds and charges related to enlisting on the stock exchange to be exempted the 17.5 percent VAT.

Chief Executive Officer of the Ghana Stock Exchange, Ekow Afedzie argued in this afternoon's budget consultative workshop that government needs to make enlisting on the Stock Exchange attractive for local companies.

" It is our aim, that as many companies as possible, will enlist on the Ghana Stock Exchange. That is the sure way of creating opportunities for Ghanaians to share in the wealth of all the multinational companies coming into the country. Not forgetting the opportunity we create for local companies who need access to funds for expansion."

The Stock Exchange boss further lamented the amounts of taxes charged on transactions on the Stock Exchange.

" At the moment, taxes being charged on transactions pertaining to enlistment and others have become a disincentive for many local companies. Especially for the alternative stock exchange which serves the investment needs of SMEs."

The minister of Finance, Seth Terkper in response to the appeal said little can be done in exempting companies from taxes looking at the country's shortfalls in revenue generation. He however assured that the ministry will assess the appeals for exemptions by all companies and objectively take a decision.

Meanwhile, the ministry of finance agreed to exempt mobile money operators from the 17.5% Value Added Tax charged on non- core banking services. This according to the ministry, is to help the industry grow.

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