[ 2021-03-13 ]

Trotros and Taxis to enjoy free income tax, hotels and restaurants to get 30%
Government has announced the suspension of vehicle
income tax for beneficiaries of commercial public
transport popularly called trotros and taxis.

This the Caretaker Finance Minister Osei Kyei
Mensah Bonsu said is aimed at reducing the cost of
transportation under its tax relief program.

Presenting the 2020 Budget statement to Parliament
Friday, the Suame MP said, “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.”



The Parliamentary Affairs Minister explained that
“Government is, therefore, rolling out these
additional reliefs for different sections of the
population especially those hardest hit by the
pandemic.”


Osei Kyei-Mensah-Bonsu reading the 2021 Budget
Regarding Vehicle Income Tax, he said government
is suspending the “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.”

The Suame MP also announced a tax rebate of 30 per
cent on the income tax due for companies in hotels
and restaurants, education, arts and
entertainment, and travel and tours for the
second, third and fourth quarters of 2021.

For operators of small businesses using the income
tax stamp system, government is suspending the
quarterly income tax instalment payments for the
second, third and fourth quarters of 2021.

There is also an extension of the waiver of
interest as an incentive for early payment of
accumulated tax arrears.

There will be “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.

The Caretaker Finance Minister stressed that
“Beneficiaries of these relieve will have to be
registered with the Ghana Revenue Authority and
must have fulfilled their first quarter tax
obligations.”

Source - Joyfm

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