AUTO (spare) parts dealers across the country will soon heave a sigh of relief after the announcement by the Minister of Finance, Ken Ofori-Atta, of government’s decision to abolish import duties on spare parts and seven other taxes.
The finance minister described many of the taxes as ‘nuisance taxes,’ thus their removal.
This, he noted, will ease the difficulties the taxes imposed on Ghanaians.
According to him, these measures will help drive the job creation agenda of government, lessen the hardships of Ghanaians and secure a business-friendly environment in the country.
Reading the first budget of the ruling New Patriotic Party in Parliament yesterday, the Mr. Ofori-Atta insisted that despite the doubts of political opponents, the Akufo-Addo-led government was committed to implementing its 2016 campaign promises.
According to the finance minister among that taxes which will be abolished the following: the one per cent special import levy, 17.5 VAT on domestic airline tickets, abolish 17.5 VAT on financial services, 17.5% VAT on selected imported medicines, 5% VAT on real estates, excise duty on petroleum, duties on importation of spare parts and levies imposed on Kayayei “head porters) by local authorities.
Mr. Ofari-Atta also promised to reduce the following taxes: special petroleum tax rate from 17.5% to 15%, replace the 17.5 VAT on Ghana Stock Exchange (GSE) traders to a flat rate of 3.5 per cent, reduce National Electrification levy, and again initiate steps to remove import duties on raw materials and machinery.
“Tolls charged head porters locally known as ‘Kayayei’ who move from the north to the south of Ghana to engage in several menial jobs will also be abolished,” he disclosed.
Many of the taxes, which the finance minister promised to abolish or reduce, were introduced by Mahama-led government to fill the revenue shortfall in the country.
“A number of tax measures were introduced in recent years in an attempt to deal with revenue shortfalls but some have proven to be nuisance taxes,” the finance minister lamented.
According to him, those new taxes have no revenue yielding potential, and at the same time imposed a significant burden on the private sector and on the average Ghanaian citizen.
“As part of our commitment to re-energise the private sector, the government has decided, as pledged, to review these taxes to provide relief for business,” he added.
“Some of these taxes have proven nuisance, hence, the measures to eliminate and reduce some of them is in line with government’s commitment to ensure that the economy regains its strength,” he reiterated.
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