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Business News of Thursday, 18 November 2021


Local businesses can't survive with focus only on tax holidays for foreigners - Expert

Brands expert Scofray Nana Yaw Yeboah has asked the government to review its policy on tax holidays enjoyed by foreign businesses as against Ghanaian businesses.

He believes the agenda to encourage young persons to establish their businesses would not succeed if the tax regime in the country is not reviewed to Ghanaian businesses especially new ones established by the youth.

He was responding to the decision by the government to introduce YouStart, an initiative that has been in the 2022 budget statement.

It is expected to help in reducing the youth unemployment situation in the country.

The YouStart initiative proposes to use GH¢1 billion each year to catalyse an ecosystem to create 1 million jobs and in partnership with the Finance Institutions and Development Partners, raise another GH¢ 2 billion.

“In addition, our local banks have agreed to a package that will result in increasing their SME portfolio up to GHC 5 billion over the next 3 years.

“This, Mr. Speaker results in an unprecedented historic GH¢10 billion commitment to the private sector and YouStart over the next 3 years.”

Reacting to the initiative, the brand expert said it was not a bad idea.

Ghanaians must support it, but there were other factors depriving businesses of surviving, including taxes.

He asked the kind of tax benefits Ghanaian businesses get compared to foreign businesses in Ghana.

In his view, it was unfair for foreigners to enjoy tax holidays when Ghanaian businesses were struggling.

He also lamented the high cost of the internet in Ghana.

He called for an integrated intervention for businesses where institutions such as the Ghana Export Promotion Agency, the Port Authority, and others provide support for businesses.

He was speaking on 'Nyankonton Mu Nsem' on Rainbow Radio 87.5Fm.