30 per cent corporate tax for GSE newcomers

Parliament on Wednesday gave its consent to the Internal Revenue Bill which will slash the corporate tax of companies listed on the Ghana Stock Exchange (GSE) from 32 to 30 per cent. The Bill, which was taken through the consideration stage and attracted more than 53 amendments, also scrapped all taxes charged on dividends raked in on instruments and shares.

It is primarily aimed at amending and consolidating all existing laws relating to income tax, capital gains and gift tax. Mr Kwame Peprah, Minister of Finance, had convinced the house that the tax cut would encourage more companies to enlist on the stock market.

Mr Akwasi Osei Adjei, NPP-Ejisu-Juaben, who fought alone against the offer, said the arrangement is against the nation's tax philosophy that the wealthy must pay more tax because companies that trade on the stock market are the big and well-resourced ones.

Peprah argued that preparations made by such companies before hooking onto the GSE make their operations more transparent, leaving very few or no loopholes for tax evasion.