Finance Minister, Ken Ofori Atta has announced a two-year extension of the Value Added Tax (VAT) relief on African prints for textile manufacturers in the country. According to him, the extension is to enable them to resuscitate their operations and provide affordable textiles to the market.
Mr Ofori Attah disclosed this during the 2022 budget statement today at the Parliament House.
However, the government has indicated that it will streamline the country’s tax regime to prevent large companies from abusing tax exemptions.
With Ghana losing about five per cent of its Gross Domestic Product (GDP) annually due to excesses in taxes of companies operating in the free zone, the government says it is putting in place measures to handle wasteful tax exemptions.
“We wish to reiterate that we are in challenging times, which require radical measures, so let us embrace these new policies to enable Government to address the fundamental issues affecting the economy, to ensure that, our Nation continues to maintain its position,” he said.
Source: Mybrytfmonline/Joseph Asare
