Foreign Business Tax Incentives Cost Ghana $1.2 Billion Annually
From Ghana Web
Ghana loses about $1.2 billion annually as a result of tax incentives, which are offered to major foreign companies operating in the country.
According to a new report published by ActionAid Ghana (AAG) in Accra, the amount was equivalent to about twice government’s entire health budget for 2013 and about half the entire education budget.
The report said analysis of the percentage component of total revenues offered as incentives in different categories showed that in 2012, 41 percent of trade tax revenue was lost through tax exemptions compared to 28 percent of direct tax and VAT revenues.
The report, dubbed: “Investment Incentive in Ghana: The Cost To Socio-Economic Development,” was conducted by the Integrated Social Development Centre (ISODEC) on behalf of AAG.
While the report recognizes the importance of tax incentives, it stressed the need to measure how much is given as tax incentives against the expected benefits.
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