Ghanaian Government has hinted of its intention to grant a tax-free year to business startups.
This is part of moves to strengthen and promote SME’s growth.
Parliament recently approved four amendment bills to scrap taxes as proposed in the 2017 budget.
The move also formed part of the government’s efforts at reducing cost of doing business in Ghana.
Business Development Minister, Mohammed Ibrahim Awal also says the government will soon roll out the plan to create an enabling environment for startups to thrive.
“Government’s policy again is to continue to give some one-year tax holiday for startups. Because when you start a business it takes sometimes about three years to recover. So when you start and do it very well, we will give you tax holiday so that you can recoup this money, pour it back into the business and grow. Startups are very important for us,” he said.
The issue of access to credit has been on top as the challenges facing businesses in Ghana.
The Association of Ghana Industries for instance has bemoaned the inability of its members to secure funding for their operations with several attempts.
The NPP government has also reassured that it will not compete with the private sector for funds.
This is expected to give long term access to businesses to expand.
The tax cuts to start-ups is also expected to grant them a strong footing to develop and fit into the Business Development Ministry’s long term agenda of building twenty big companies in Ghana.
Mr. Awal who was speaking at the 2017 first quarter meeting by the AGI in Kumasi also stressed,
“It is to shift from driving the economy to creating an environment for private sector to grow. We are not going to compete with you to do business. The government’s function is to create the space for you. We won’t compete with the private sector; that is not our work. We are to create the environment for you to grow and this includes removing the taxes and laws to make sure it works.”
The meeting was on the theme “Creating the enabling environment for the private sector as the Engine of Economic Growth.”