The government has announced a tax holiday for Ghanaian entrepreneurs who are 35 years and below.
The aim is to encourage the young generation to start their own businesses while “creating a supportive ecosystem for young Ghanaian entrepreneurs.”
“As a further commitment to creating a supportive ecosystem for young Ghanaian entrepreneurs of age 35 years and below who start their own businesses, government will, through the National Entrepreneurship and Innovation Plan (NEIP), grant tax holidays based on the number of persons employed by a start-up or early-stage business,” the Finance Minister Ken Ofori-Atta disclosed while presenting the 2018 Budget Statement and Economic Policy in Parliament on Wednesday.
He added: “A preferential tax rate of between 3 to 5 years will be granted after the tax holiday. They will also be allowed to carry forward losses for five years.”
Also, Mr. Ofori-Atta stated that “to protect low-income earners and ensure fairness in our income tax administration, government will review the current income tax thresholds by pegging the tax-free threshold to the current minimum wage. In effect, government will abolish income tax on the incomes of minimum wage earners.”
“The ongoing reform of the lotteries industry will continue, and the measures against illegal lottery business intensified. To remove the incentives for people to engage in illegal lottery, the 7.5% income tax on the commission of lotto marketing companies will be abolished and the 5% withholding tax on lotto prizes removed,” he revealed.
“Tax Amnesty: In 2018, parliamentary approval will be sought to exempt taxpayers who register and file returns within a targeted period from paying penalties and interests for late or non-submission of returns and late payments. This includes exemption from prosecution. GRA will, after the amnesty period, wage an intense campaign to prosecute continuing defaulters and offenders,” he added.