Businesses that pay 25% of their profits in corporate taxes should expect to pay less from next year (2018).
The corporate tax is expected to be reduced to twenty percent eventually.
It follows what the Finance Minister, Ken Ofori Atta says is the consideration of reducing the tax in the 2018 budget.
This is also part of the tax cuts which was key among the numerous promises by the New Patriotic Party (NPP) ahead of the 2016 general elections.
Mr. Ken Ofori Atta maintains that diversifying tax revenue streams should prevent the overconcentration on Corporate Income Taxes (CIT).
“How do you then tap enough people to contribute so that you do not need to focus on corporate income tax as a main source of revenue…We are considering reduction in a number of taxes and the Corporate Income Tax is one of them,” he explained.
Upon assuming office, the NPP government has reviewed about fifteen (15) taxes.
In the government’s first budget, eleven taxes which were viewed as nuisance; were slashed.
In addition, four others were reviewed downwards in a bid to relieve the plight of taxpayers and ensuring equity.
Meanwhile Mr. Ken Ofori Atta has disclosed to Citi Business News his outfit will embark on an effort to renew the revenue collection from property taxes.
This he also believes will be highly achieved with the implementation of the national ID system.
“We are clear on the philosophy of taxes which is to reduce taxes to create economic spaces for people to operate…a corollary of that is also being able to expand the tax net and that is where the national ID becomes an important instrument,” he asserted.
Mr. Ofori Atta added, “For example our property tax system is non-existent and that is an area that we intend to look at. But our mission more will be to reduce the import of taxes on productive sectors of the economy.”
Source: Citi Business News