Ease corporate-income tax to 20% from 25% to give workers relief – Strategy expert

A finance and strategy expert, Benjamin Dzoboku is calling on government to consider easing corporate-income tax to 20% from 25% to give workers relief in the wake of the novel Coronavirus outbreak.

According to him, the move is necessary because banks, insurers, telecommunications firms, breweries, and miners pay an additional 5 percent levy on pretax profit, making their effective rate 30 percent.

“If you don’t do that, businesses are going to suffer, every sector is now going to be impacted by the novel Coronavirus,” Dzoboku said this in an interview with Bloomberg.

He adds manufacturing, agriculture, hospitality and airline industries will be the most hit due to low production, patronage and social distancing directives.

Following the announcement of a partial lockdown to curb the spread of coronavirus, government has cut its forecasts for economic growth this year to a 37-year low of 1.5 percent.

The Bank of Ghana (BoG) has also cut its monetary policy rate to 14.5 percent from 16 percent and eased capital rules to free up money for lending and to increase liquidity.

Meanwhile, some economists want government to quickly set out the modalities for the expected GH¢1 billion stimulus package announced by President Nana Addo Dankwa Akufo-Addo for businesses and households.