Government to abolish “nuisance” taxes - says Finance Minister

The Finance Minister of Ghana, Hon. Ken Ofori Atta has made a loud statement in Parliament today with the announcement of government's decision to remove many taxes which he tagged as “nuisance”
and imports duties on certain items that have often worked against the development of the private sector. 

Ken Ofori Atta said this in parliament when presenting the 2017 "Asempa" budget and economic policy statement to today, He also reiterated the 17.5% VAT/NHIL on financial services introduced by the John Mahama government would be abolished. 

Tax for Kayaye's abolished

The Finance Minister also said VAT on some selected imported medicines that aren't produced in Ghana would be abolished as the government takes measures to abolish import duties on some raw materials and machinery for production. 

 Hon. Ofori Atta also said Nana Addo's government will remove taxes on domestic airline tickets as well as abolishing 5% VAT/NHIL on sales of real estate.

According to the Minister, the government will also abolish excise duty on petroleum products, adjust special petroleum tax rate which stands at 17.5% to 15%. Another pro-poor initiative that was captured in the 2017 budget is the abolishment of levies imposed on head porters popularly known in Ghana as "kayaye".

Government is going to reduce the National Electrification Scheme Levy from percent to 3 percent, and the Public Lighting Levy would be adjusted from 5 percent to 2 percent. 

He said; the government has also decided to replace the 17.5% VAT/NHIL rate with a flat rate of 3% for all traders, the minister itemized. 

With a high rate of unemployment, the government intends to implement tax credits and other incentives for businesses that are ready to hire young graduates to reduce the unemployment rate.