Ghanaian businesses that pay 25% of their profits in corporate taxes will pay less from 2018.
According to the Finance Minister, the corporate tax is expected to be reduced to twenty percent.
Ken Ofori Atta told Accra-based Citi FM that the NPP government is considering the diversification of tax revenue streams.
He said this when done should prevent the over-concentration 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 a reduction in a number of taxes and the Corporate Income Tax is one of them,” he explained.
In a related development, Ofori Atta said his outfit will embark on an effort to renew the revenue collection from property taxes.
“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.”
“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,” he added.
The NPP government during the campaign ahead of election 2016 chastised the then Mahama-led administration for burdening few Ghanaians with high taxes.
They promised to, therefore, reduce taxes and widen the tax net if they win power.
After the assumed office, the NPP government has reviewed about fifteen (15) taxes.
In the government’s first budget, eleven taxes were slashed.
Four more were reviewed.