BusinessNews

2021 Budget: Trotros and Taxis to enjoy free income tax, hotels and restaurants to get 30% rebate

Government has announced the suspension of vehicle income tax for beneficiaries of commercial public transport popularly called trotros and taxis.

This the Caretaker Finance Minister Osei Kyei Mensah Bonsu said is aimed at reducing the cost of transportation under its tax relief program.

Presenting the 2020 Budget statement to Parliament Friday, the Suame MP said, “Government in 2020 outlined a number of initiatives to cushion the effect of the pandemic on the populace.

“Some sectors of the economy and sections of the population, however, continue to suffer the devastating consequences of the pandemic.”

The Parliamentary Affairs Minister explained that “Government is, therefore, rolling out these additional reliefs for different sections of the population especially those hardest hit by the pandemic.”

Osei Kyei-Mensah-Bonsu reading the 2021 Budget

Regarding Vehicle Income Tax, he said government is suspending the “quarterly instalment payments of the vehicle income tax for the third and fourth quarters of 2021 for trotros and taxis as part of measures to reduce the cost of transportation.”

The Suame MP also announced a tax rebate of 30 per cent on the income tax due for companies in hotels and restaurants, education, arts and entertainment, and travel and tours for the second, third and fourth quarters of 2021.

For operators of small businesses using the income tax stamp system, government is suspending the quarterly income tax instalment payments for the second, third and fourth quarters of 2021.

There is also anextension of the waiver of interest as an incentive for early payment of accumulated tax arrears.

There will be “A waiver of penalty and interest on accumulated tax arrears up to December 2020 to reduce cash flow challenges for companies and individuals who arrange terms with GRA to pay up the principal by September 2021.

The Caretaker Finance Minister stressed that “Beneficiaries of these relieve will have to be registered with the Ghana Revenue Authority and must have fulfilled their first quarter tax obligations.”

 

Source: Ghana|Myjoyonline.com

Show More
Back to top button
Translate »