Private enterprises have lauded the tax free holiday policy for startups effective this July.
Business Development Minister, Mohammed Ibrahim Awal explains that the move forms part plans to reduce the cost of doing business in Ghana and encourage private sector development.
The NPP government has already abolished some eight taxes and reviewed four others in a bid to bring relief to businesses.
Commenting on the latest development, the Founder and President of the Entrepreneurs Foundation of Ghana, Sam Ato Gaisie told Citi Business News the tax free holiday for startups would also reduce challenges usually faced by new companies.
“It is good news and it will definitely help establish a lot of the entrepreneurs because the world economy is now moved by entrepreneurship.”
Mr. Gaisie added that the private sector is a key leader in economies around the world and encouraged the government to continue to bring out such incentives to foster private sector development.
“The private sector is now taking over in terms of managing the economy so basically if you want more people to go into entrepreneurship, the best thing is to encourage them with such incentives that will enable them to be part of the private sector development”.
Meanwhile Sam Ato Gaisie has advised startups that would benefit from the tax free holiday to invest their proceeds into their business in order to derive the full benefits of the tax holiday.
“Discipline for every businessman is key and I will advise beneficiaries of the tax holiday to invest back into their businesses,” he stated.
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