You are here: HomeBusiness2019 02 21Article 725098

Business News of Thursday, 21 February 2019

Source: Myjoyonline.com

SONA 2019: Tax exemption policy growing menace to fiscal, revenue generation – Akufo-Addo

President Akufo-Addo has said tax exemption policy has proving to be an Achilles heel and a growing menace to fiscal and revenue generation in the country.

Speaking at the State of the Nation Address in Accra on Thursday, President Akufo-Addo said: “Revenue mobilization poses the biggest challenge in the management of our economy with the tax exemption policy, in particular, proving to be an Achilles heel and a growing menace to fiscal and revenue generation.”

He added, “We intend to do something about tax exemptions, by introducing suitable measures that may disrupt the easy and comfortable arrangements that many have become accustomed to, but which we have to take to ensure that we have the firmest of foundations for the economic take-off that has escaped us for so long.

Earlier, Commissioner-General of the Ghana Revenue Authority (GRA), said discussions were ongoing with the government over a review of some clauses of the tax exemption laws.

Emmanuel Kofi Nti said, called for a review or possible scrapping of tax waivers for multinationals and mining firms to complement revenue generation are justified.

“Government is reviewing the area of exemptions overall and some of them there may be some set clauses and the duration for the exemption. We are looking at a situation where the law defines itself so that no one comes asking for exemptions,” he said.

“We are aware of the implications for exemptions because it is revenue forgone and no one wants to sacrifice its revenue, so it is an area that government is looking at,” Mr Nti said.