Government has granted tax breaks to companies within the arts, entertainment and hospitality sector as the major bid for the year 2021.
According to Minister for Parliamentary Affairs and interim Finance Minister Osei Kyei-Mensah-Bonsu, the tax exemptions given will not in any way derail government’s revenue mobilization for the 2021 fiscal year.
He said government has deployed creative revenue mobilization strategies in the medium-term that will help increase the country’s revenue streams.
This was made known during the 2021 budget statement and economic policy presentation in Parliament on Friday March 12, 2021.
According to him, it is important to provide companies within these sectors the needed tax exemptions to cushion them against the economic effects of the COVID-19 global pandemic.
He said this forms part of the government’s broader economic recovery plan to get the Ghanaian economy back to its previous state.
He said government will “provide Corporate Income Tax rebate of 30% to companies hard hit by Covid-19 pandemic for Quarter 2 to Quarter 4 of 2021. Targeted companies include those in the accommodation and food services, Education, Arts and Entertainment, and Travel and Tour operators.”
This implies no allocation of funds so government can crawl back on its feet in boosting the country’s economy.
The pursue is revenue-enhancing measures with a focus on deepening our digitalization agenda.