Government has abolished the 1% market tolls which has existed for several years.
The move is in fulfilment of President Akufo-Addo’s promise of massive tax cuts during the 2016 elections.
Market women and head porters, popularly known as Kayayei, are required to pay one percent of their earnings in taxes to the state on daily basis.
The NPP used the market tolls as a campaign message and won the support of most market women and head porters ahead of the polls.
Delivering the government’s maiden budget in Parliament Thursday, Finance minister Ken Ofori-Atta said the budget aims at building strong fiscal foundation for the Ghanaian economy.
He said the government will reduce tax exemptions and also broaden the tax base as part of several measures being considered to protect and enhance the public purse.
According to him, inefficiencies and waste in public spending will not be to tolerated, maintaining that government expenditure will be controlled. Below are some of the tax reliefs announced in the budget
The 1 % Special Import Levy – ABOLISHED
Kayayei Market Tolls – ABOLISHED
17.5 % VAT/NHIL on financial services – ABOLISHED
17.5 % VAT/NHIL on selected imported medicines, that are not produced locally – ABOLISHED
17.5 % VAT/NHIL on domestic airline tickets – ABOLISHED
5 % VAT/NHIL on Real Estate sales – ABOLISHED
Replaced 17.5% VAT/NHIL with 3 % flat rate for traders
Tax credits and other incentives for businesses that hire young graduates from tertiary institutions
Tax Incentives for Young Entrepreneurs
Duty on imported Spare parts Abolished
Corporate Income Tax to be progressively reduced from 25% to 20% in 2018
Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.
