The government recently declared the suspension of vehicle income tax for users of commercial public transportation, also known as trotros and taxis.
This, according to Caretaker Finance Minister Osei Kyei Mensah Bonsu, is part of a tax reduction program aimed at lowering transportation costs.
The Suame MP said in presenting the 2020 Budget statement to Parliament on Friday, “Government in 2020 outlined a range of measures to cushion the impact of the pandemic on the population.”
“However, certain parts of the economy and segments of the population continue to bear the crippling effects of the pandemic.”
According to the Parliamentary Affairs Minister, “the government is thus carrying out these additional reliefs for different parts of the population, particularly those badly affected by the pandemic.”
He mentioned that the government would suspend “quarterly instalment payments of the vehicle income tax for the third and fourth quarters of 2021 for trotros and taxis as part of steps to reduce the cost of transportation.”
The Suame MP also declared a 30% income tax rebate for businesses in hotels and restaurants, education, arts and entertainment, and travel and tours for the second, third, and fourth quarters of 2021.
The government is suspending quarterly income tax instalment payments for small business owners who use the income tax stamp scheme in the second, third, and fourth quarters of 2021.
There is also an extension of the interest-free period as a reward for paying off accrued tax arrears early.
“A waiver of penalty and interest on accrued tax arrears up to December 2020 to mitigate cash flow problems for businesses and individuals who arrange terms with GRA to make up the principal by September 2021,” according to the announcement.
“Beneficiaries of these reliefs must be registered with the Ghana Revenue Authority and must have fulfilled their first quarter tax obligations,” the Caretaker Finance Minister said.