Business News of Monday, 26 November 2018
Business Development Minister Dr. Ibrahim Mohammed Awal has announced a reprieve for small and medium scale startup businesses in the country.
His call reaffirms government’s commitment to ensuring that local companies thrive in the country.
Speaking as a Guest of Honour at the 2018 Ghana Small and Medium-sized Enterprises and young CEOs summit at Kempinski in Accra, Dr. Mohammed Awal disclosed that startup businesses will be given a 3-year tax break during the first 3 years of setup.
He explained that his outfit is on course to draft a proposal to be reviewed by the Finance Ministry and sent to Parliament for it to be passed.
“We are reviewing the Procurement Law in this country. By next year, Ghanaian businesses are going to be considered much more than foreign businesses in the procurement business. 30 percent of it will go to them.
We are also sending to Parliament a startup law. 3 years as a startup you’ll not pay taxes. All these monies will be powered back into your business,” the Minister declared.
During the budget statement presented to Parliament by Finance Minister Ken Ofori-Atta in 2017, government promised to grant tax holidays to young business owners who will register with the National Entrepreneurship and Innovation Plan (NEIP).
“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.
Dr. Ibrahim Mohammed Awal further gave the assurance that the relief will be enforced before the end of 2019.
This year’s SMEs Young CEOs Summit themed Corporate Leadership Governance & Technology: Strong Pillars for Business & Economic Growth” was the second since its inception.
Some of the key topics discussed at the summit included; Corporate Leadership Governance for Business growth, the impact of the fourth industrial revolution on SMEs, the next frontier in SME Banking and Finance, Policy and Regulatory issues pertaining to doing business in Ghana and the Ghanaian Economy.