The Small and Medium size Enterprises (SMEs) have been encouraged to take advantage of the business incentives announced in the 2024 budget statement and economic policy of the government to grow their businesses to become more vibrant and competitive.
The Head of Quality Assurance at Deloitte Ghana, Mr. Kwabena Antwi Situ, gave the advice in a media interview on the sidelines of Access Bank – Deloitte Ghana SME Business interaction series last Thursday, November 23, 2023 in Tamale in the northern region.
He noted there are some policy initiatives and incentives within the 2024 budget that businesses can advantage of to make them more competitive.
The Minister of Finance, Ken Ofori Atta presented the budget last Wednesday, November 15, and announced some tax reliefs in in response to calls from a section of the public and the private sector to ensure economic stability and improve the living conditions of the people.
He mentioned a zero rate VAT on locally produced sanitary pads in addition to a grant on import duty waivers for raw materials for the local manufacture of sanitary pads.
Among other things, the government in the 2024 budget has extended zero rate of Value Added Tax (VAT) on locally manufactured African prints for two more years, as well as zero rate of VAT on locally assembled vehicles for two more years.
The Minister further announced a VAT flat rate of five per cent to replace the 15 per cent standard VAT rate on all commercial properties to simplify administration of the tax handle.
The government waived import duties on the importation of electric vehicles for public transportation for a period of eight years, in addition to a waive on import duties on semi-knocked down and completely knocked down electric vehicles imported by registered electric vehicles assembly companies in Ghana for eight years.
On the back of this, Mr. Kwabena Antwi Situ urged businesses to explore the opportunities and the tax incentives in the 2024 budget to become sustainable and competitive in the market environment.
Meanwhile, the Access Bank – Deloitte Ghana SME Business interaction series was organized to build the capacity of business owners and entrepreneurs in the northern region and create a medium for them to network among themselves. About ten thousand (10,000) businesses are targeted to benefit from the program within a year across the country.
The participants were educated on how to keep proper business records, tax obligation and compliance and governance among others.