Government gives tax exemption to Tourism and Arts industry
As part of efforts to revamp the Tourism, Culture and Creative Arts industry, government has granted tax breaks to companies within the sector.
Minister for Parliamentary Affairs and interim Finance Minister, Osei Kyei-Mensah-Bonsu made this known during the 2021 budget statement and economic policy presentation in Parliament on Friday, March 12, 2021.
The tax exemptions are to cushion the sector against the economic effects of the COVID-19 global pandemic.
He said this forms part of the government’s broader economic recovery plan to get the Ghanaian economy back to its previous state.
“Government will provide corporate income tax rebate of 30% to companies hard hit by Covid-19 pandemic for Quarter 2 to Quarter 4 of 2021”.
“Targeted companies include those in the accommodation and food services, Education, Arts and Entertainment, and Travel and Tour operators.”
Allaying fears that the tax waiver may derail governments revenue mobilisation for 2021,the Minister said government has deployed creative revenue mobilization strategies in the medium-term that will help increase the country’s revenue streams.
“In the medium-term, we will pursue revenue-enhancing measures with a focus on deepening our digitalisation agenda both on transactions on goods and services as well as on the tax collection machinery as part of measures to broaden the tax base and rope in a lot more eligible taxpayers into the tax net”.
“Expenditures will be rationalized through the implementation of tighter expenditure control systems with a more efficient procurement system to ensure value for money. We will also pursue structural reforms in public finance management system to improve efficiency in public service delivery,” he said.
Mr. Osei Kyei Mensah Bonsu presented the budget to parliament on behalf of the government because the Finance minister designate, Ken Ofori- Atta is away in the United States suffering from post COVID-19 complications.