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Business News of Tuesday, 20 December 2016

Source: Starrfmonline.com

Reverse capital gains tax – GSE boss to Akufo-Addo

The Ghana Stock Exchange has called on the incoming government to review the capital gains tax.

The tax which took effect on January 01, 2016 is part of the new Income Tax Law 2015. It is paid when one makes profit from selling an asset such as stocks or property.

This means that capital gains earned by companies are subjected to a flat tax rate of 15 percent.

The Managing Director of the GSE, Kofi Yamoah said this renders Ghana’s Stock Exchange less competitive in the sub-region while at the same time, hindering the growth of the capital market.

The performance of the Stock Exchange for this year has been poor owing to the unfavorable economic indicators such as Treasury bill rates. Mr. Yamoah said investors would repose more confidence in the bourse if government rates reduce.