Economic Advisor and Spokesperson for the Vice President, Dr. Gideon Boako, has reiterated government's commitment to suspend taxes for transport bus drivers in the country.
The Minister for Parliamentary Affairs and Member of Parliament for Suame, Osei Kyei Mensah-Bonsu, on Friday read the 2021 budget statement on behalf of Finance Minister-designate, Ken Ofori-Atta who is currently undergoing medical treatment in the United States.
Reading the budget statement at Parliament, Hon. Osei Kyei Mensah-Bonsu outlined some major policies by the government to support Ghanaians, particularly to salvage them from the ravages of the COVID-19 pandemic.
"Mr. Speaker, 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'', he told the house, adding that due to this, the government is rolling out ''additional reliefs for different sections of the population especially those hardest hit by the pandemic".
The tax reliefs are intended to best the living conditions of the beneficiaries.
"Beneficiaries of these relieves will have to be registered with the Ghana Revenue Authority and must have fulfilled their first quarter tax obligations," he directed.
Touching on the budget statement, Dr. Gideon Boako was full of smiles about the government's intentions to alleviate the hardships of the Ghanaian populace.
He noted that, for transport bus drivers in particular, they will not pay income tax again.
"The government says because we want to ease transport pressures on people, the income tax that trotro and taxi drivers together with 207 and VIP drivers pay, the government has suspended that income tax. From 1st April, when we finish with our appropriation, trotro and taxi drivers won't pay income tax again," he stated on Peace FM's "Kokrokoo".
He also added that "small businesses will also enjoy suspension of income tax stamp''.
Going into details, he highlighted what Hon. Osei Kyei Mensah-Bonsu said before Parliament regarding the tax reliefs.
Tax Reliefs
Government will undertake the following reliefs:
• Tax Rebate: Provision of a rebate of 30 percent on the income tax due for companies in hotels and restaurants, education, arts & entertainment, and travel and tours for the second, third and fourth quarters of 2021;
• Tax Stamps: Suspension of quarterly income tax instalment payments for the second, third and fourth quarters of 2021 for small businesses using the income tax stamp system;
• Vehicle Income Tax: Suspension of 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;
• Extension of the waiver of interest as incentive for early payment of accumulated tax arrears: 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.
Source: Ameyaw Adu Gyamfi/Peacefmonline.com/Ghana
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