The government of Ghana in an attempt to improve the business environment in the country has introduced various tax incentives. Although they all will have impact on your business activities, we will highlight few and talk about the rest in the next release.
- 1% special import levy has been abolished
- 17.5% VAT/NHIL on financial services has been abolished
- 17.5% VAT /NHIL has been replaced with 3% flat rate for traders.
This is good news for traders because it automatically reduces how much is charged to customers. The fact is, these traders hardly get input VAT so the previous rate of 17.5% VAT/NHIL was only making the prices of their commodities higher which affects patronage of their products.
Although the flat rate does not allow an offset of any input VAT if any, it’s good for traders to get their prices at an acceptable level to their customers since the tax on their commodities is only 3%, which is collected, and return to the authority.