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Government reviewing its tax exemption policy –Deputy Finance Minister

Deputy Minister of Finance, Kwaku Kwarteng, has stated that government is reviewing its tax exemption policy to include taking up stakes in businesses in exchange for the exemptions.

According to him, this would enable the government to quantify the value of investment and make gains that inure to the benefit of the country while ensuring that the right conditions for business growth was created.

Mr  Kwarteng was speaking at this year’s 2nd CEO’s Breakfast Meeting organised by the Ghana Investment Promotion Centre (GIPC).

It was on the theme, ‘Assessing the tax exemptions regime.’

As part of the arrangement, he explained that, the government would be compelled to give up its stake when the business had achieved an appreciable growth and could do without the support of tax exemptions and a request for it made by the private partner.

“It is not the government’s wish to take up the stake in the business for eternity. Government will be ready at all times to give up its stake when the private partners feel the business has grown and want to own it fully,” he added.

The deputy minister explained that the review of the strategy was to rationalise tax exemptions and ensure the reasons for exemptions including job creation and investments in the country were realised.

Tax Partner of PWC Ghana, Abeiku Quansah, called on the Ghana Revenue Authority (GRA) to monitor and resolve abuses of tax exemptions.

“Some companies are taking advantage of the tax exemptions to make profit for themselves without helping to achieve the objectives of the tax exemptions idea. The GRA must monitor these companies and sanction those abusing it,” he stated.

To ensure the effectiveness of the tax exemptions strategy, he urged Parliament to pass the tax exemptions bill into act for effective regulation.

BY CLAUDE NYARKO ADAMS

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