Creative Sector Gets Tax Rebate

Osei Kyei-Mensah-Bonsu

Government, as part of its efforts to lessen the adverse effects of the COVID-19 pandemic on companies, has announced it will provide corporate income tax rebate of 30% to companies hard hit by COVID-19 pandemic for Quarter 2 to Quarter 4 of 2021.

Targeted companies include those in the accommodation and food services, education, arts and entertainment, and travel and tour operators.

This was made known by Minister for Parliamentary Affairs and interim Finance Minister, Osei Kyei-Mensah-Bonsu during the 2021 Budget Statement and Economic Policy presentation in Parliament last Friday.

There is also a suspension of tax stamps on income tax payment for small businesses from second, third and fourth quarters of 2021.

The tax rebate forms part of the government’s efforts of reducing the sufferings of the vulnerable groups and Ghanaians, whose conditions have been worsened by the COVID-19 pandemic.

Osei Kyei-Mensah-Bonsu said it was important to provide companies within the creative and other sectors the needed tax exemptions to cushion them against the economic effects of the COVID-19 global pandemic.

Since the outbreak of the coronavirus pandemic, a lot of activities in the creative and tourism sectors have come to a halt.

The tax rebate will be the second step government has taken to help cushion people in the entertainment and hospitality sectors against the COVID-19 effects.

Stakeholders in the creative sector have lost their sources of livelihood because they can no longer hold concerts, movie premieres, and other theatrical performances.