Under the New Tax Law Government imposed 20% on the Chargeable income derived by a financial institution from loan granted to a framing enterprise in the production of income of the enterprise.
The Ghana Agriculture Workers Union has charged government to withdraw the new taxes imposed on the agricultural sector.
Under the New Tax Law Government has imposed 20% on the Chargeable Income derived by a financial institution from loan granted to a framing enterprise in the production of income of the enterprise.
The New Tax Law also imposes a 1% tax on Agro- processing companies operating in the country for 5 years, a 1% tax on Cocoa by-product business conducted wholly in the country for the first five years. All these taxes will be impose during the 5- year tax holiday enjoyed by new businesses after which the businesses will pay the 25% corporate tax imposed on all businesses.
GAWU however believes that the taxes are inimical to the growth of the Agric sector and must be removed or revised.
" All we are saying is that the taxes imposed on the Agric sector will further hinder growth in a sector that is already challenged. A careful analysis of the taxes will deter provision of investments in the sector" GAWU says in a statement.
GAWU adds that governments input in the agric sector is not enough in propelling the sector to its full potential.
" Government must increase investment in the sector or maintain the tax holidays and incentives as they are" GAWU says.