Government has granted tax breaks to companies within the arts, entertainment and hospitality sector.
Minister for Parliamentary Affairs and interim Finance Minister, Osei Kyei-Mensah-Bonsu, said this during the 2021 budget statement and economic policy presentation in Parliament on Friday, March 12, 2021.
According to him, it is apt to provide companies within these sectors the needed tax exemptions to aid them against the economic effects of the global pandemic.
He explained that, the tax break forms part of the government’s broader economic recovery plan.
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Mr. Speaker, Government in 2020 outlined a number of initiatives to cushion
the effect of the pandemic on the populace.Some sectors of the economy and sections of the population, however, continue to suffer the devastating consequences of the pandemic. Government is therefore rolling out these additional reliefs for different sections of the population especially those hardest hit by the pandemic.
• Tax Rebate: Provision of a rebate of 30 percent on the income tax due for
companies in hotels and restaurants, education, arts & entertainment, and
travel and tours for the second, third and fourth quarters of 2021;
• Tax Stamps: Suspension of quarterly income tax instalment payments for the
second, third and fourth quarters of 2021 for small businesses using the income
tax stamp system;
• Vehicle Income Tax: Suspension of quarterly instalment payments of the
vehicle income tax for the third and fourth quarters of 2021 for Trotros and
Taxis as part of measures to reduce the cost of transportation;Minister for Parliamentary Affairs and interim Finance Minister Osei Kyei-Mensah-Bonsu
• Extension of the waiver of interest as incentive for early payment of
accumulated tax arrears: A waiver of penalty and interest on accumulated
tax arrears up to December 2020 to reduce cash flow challenges for companies
and individuals who arrange terms with GRA to pay up the principal by
September 2021.