The government of Ghana has reiterated its commitment to ensuring that local companies thrive by announcing that young business owners in the country will receive tax holidays.
The Finance Minister, Ken Ofori Atta, made this announcement on the floor of Parliament in November 2017, whilst presenting the government’s budget and policy statement for 2018.
According to the Minister, the government will through the National Entrepreneurship and Innovation Plan (NEIP), grant the tax holidays to the beneficiaries based on the number of people they employ.
The companies will also be allowed to carry forward their losses for a period of five years
“As a further commitment to creating a supportive ecosystem for young Ghanaian entrepreneurs of age 35 years and below, who start their own businesses, government will through the National Entrepreneurship and Innovation Plan (NEIP), grant tax holidays based on the number of persons employed by a start-up or early-stage business,” he said.
“A preferential tax rate of between 3 to 5 years will be granted after the tax holiday.”
“Let me introduce you to the National Entrepreneurship and Innovation Plan. This is the flagship initiative which will be the primary vehicle for providing an integrated national support for startups and small businesses. Despite the severe constraints of our public finances, which have resulted from years of mismanagement and corruption, Government has contributed US$10 million as seed money for the Plan. It is the intention that this seed money should be leveraged to raise money from private sources and public organizations to the tune of US$100 million to fund its programmes,” the President had said.