Tax cuts for businesses that support creative arts feasible, but is government willing? - George Quaye

Ghanaian playwright and CEO of Image Bureau, George Quaye has said that implementing tax cuts for businesses that support creative arts although feasible, depends on the government's will and priorities.

In an interview in 2023, George Quaye said he had to pay GH¢60,000 in taxes while making only GH¢4,000 in profits for his stage production of "The Gods are Not to Blame".

He wished the government would use the tax money to improve the facilities of the National Theatre, where the play was hosted.

In relation to that, comedian, DKB, in a live studio discussion in 2024, suggested that companies that support culture and arts activities get tax rebates. This initiative, according to him, would encourage more investment in the showbiz industry.

Speaking exclusively to GhanaWeb Entertainment in light of that suggestion, George Quaye said that implementing tax cuts for the entertainment sector was technically feasible, but it depended on whether the government would care enough about the sector's growth.

“The biggest thing is the concept of will. Does Government care enough about the growth of the sector to take such an initiative?” he wondered.

He further outlined some pros of the initiative, saying that tax cuts would stimulate investment, job creation, and economic activity within the sector. He added that it would make the domestic entertainment industry more attractive to international investors and talent.

George Quaye further noted that tax cuts could also increase tax revenue in the long run, if they led to economic growth and higher taxable income and consumption.

“Although it may seem counterintuitive, reducing taxes might lead to increased tax revenue in the long run. This can occur if the tax cuts stimulate economic growth, resulting in higher taxable income and consumption,” he said.

He acknowledged the potential drawbacks of his proposal, such as revenue loss, which could affect public services and infrastructure development.

He said that tax cuts could also create an uneven playing field, favoring some businesses over others and could also divert resources from other pressing needs, such as education, healthcare, or infrastructure.

“The current regime is actually very unfair to the creative sector cuz a lot of our products are consumed with what many refer to as disposable income.

"It is unfair to tax the sector same as you would tax let’s say the petroleum sector which is a necessity. Can’t say same with a theatre show, a movie or music concert,” said George Quaye.

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