Policy on tax exemptions reviewed by government

In the 2017 budget statement and economic policy, government committed to a comprehensive review and reform of the import duty exemptions regime and tax reliefs, with a view of eliminating abuse and improving efficiency in the application of these incentives.

According to the dep. Minister of finance Hon. Kwaku kwarteng, he said since April 1 2017 when this policy was instituted, it has proven to be helpful in many ways. We have come to understand some of the abuse that threatened the integrity of our tax exemption regime, and denied the public purse of significant revenue.

He said in the first 8month of 2016 total import duty was GH5, 952millon and total exemption granted was GH1, 764millon, as such, tax exemptions 30% of total import dutyand taxes.

He said in 2017 the first 8month total import duty collected has increased to GH7, ,224millon, but total exemptions granted has decreased to 1, 226million, ,which is 17% of total duty and taxes for the period with this track record it is clear that the results at end year will show much for more improvement. The nation is on course to saving the one billion Ghana cedis programme for this year

New measures ..we are conscious of the fact that many genuine exemptions holders have very legitimate concerns about being asked to provisionally pay import duties and taxes for which they are exempt. They maintain, and rightly so, , that this requirements strain their working capital and poses avoidable cash flow burden on their finances.

As per the quo, the following documentation (where applicable) should be attached to the application for the exemption:

1.the basis for the exemption (that is by which law or by which parliamentary resolution)

2.recommendation letter from the relevant sector ministry or Agency.

3.customs classification and valuation report (CCVR) or customs declaration form.

4.Bill of lading or airway bill
5.commercial invoices
6.packing list
7.tax exemption assessment report(where required)
8.other supporting documents for special cases.

This measures take effect from the 1st oct.2017.in the mean time, , applications for refund by exemptions holders who have provisionally paid import duties and taxes shall be processed and the applicable refunds made.he said this at a press briefing yesterday on REVIEW:ADMINISTRATION POLICY ON TAX EXEMPTION