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The Managing Director of the Ghana Stock Exchange (GSE), Mr Kofi Yamoah, has said the introduction of the new Income Tax Act, 2015 (Act 896) has ripped off all incentives on the capital market, The phenomenon he said is, therefore threatening the sustainability of existing funds. The new tax, he said has taken away the capital gains on investments and the three per cent 3-year rebate for companies listing on the exchange for the first time, adding that this would make the market unattractive to investors. Speaking at the listing of a debt instrument of Bayport Financial Services on the Ghana Alternative Market (GAX) in Accra, Mr Yamoah said current economic conditions were already affecting the market and therefore, taking off the incentives would only result in investors fleeing the market. �In one breadth of law, the Income Tax Act of 2015 has washed away all the incentives on the market. It has taken away the capital gains which is cherished by investors, it has taken away a three per cent 3 year rebate for companies listing on the exchange for the first time, and is threatening the viability of existing mutual funds,� he said. He said unlike other countries, where the listed debt market was expected to grow to serve as an avenue to raise medium to long term funds, the GSE in the last four months had seen a sharp contrast. �The listed debt market can grow much bigger than we anticipate. It will go a long way to help us grow this market, raise more medium to long term funds for companies, for infrastructure and the country as a whole. That is in sharp contrast to what we have witnessed in the past three to four months,� he said. Per the introduction of the new tax, capital gains made on the GSE would be taxed and this industry players believe would scare investors that seek to maximise returns on their investments. �While we try to improve liquidity and transparency on the capital market, it is our wish that Parliament of Ghana, the Ministry of Finance and the Ghana Revenue Authority (GRA), will complement our efforts so that together we can raise much more capital from the investing public for the betterment of our dear country Ghana,� he added. Need for consultations The Board Chairman of Bayport Ghana, Mr Kwame Pianim said there was the need for broader consultations prior to the introduction of policies that will affect the stock market environment. �There should be a little bit more collaborative effort in anything we do that will affect the environment. There should be more consultation, more forward planning as to how the environment will change to be able to continue attracting investors,� he said. Bayport lists on GAX BAYPORT Financial Services, on January 18, listed a debt instrument of GH�78.5million on the Ghana Alternative Market (GAX) of the Ghana Stock Exchange (GSE) to raise money to reduce its debt and increase working capital. The funds, which will be raised in tranches, will sum up to GH�200million upon completion. The Managing Director of Bayport Ghana Limited, Mr Kofi Adu-Mensah, said funding for the company�s operations had been largely foreign- exchange denominated, which comes with its own risks, hence the need to source for funds locally. �Bayport�s finance funding mix had been skewed towards foreign-exchange denominated funds. This has come with its own inherent risks and losses. As we list the successful GH�78.5million note issuance, which is part of Bayport�s GH�200 medium-term programme on the GAX, we are confidently saying that our promise to our customers and shareholders would be fulfilled,� he said.