Prince Ntiamoah, Chief Executive Officer of the Ghana Chamber of Tourism Industries, has welcomed government’s 30 percent income tax reduction.
He noted that, the reduction in corporate income tax for players in the tourism sector will bode well for business. He further disclosed that it will help in breathing life to the ailing sector.
“At the reading of the 2021 budget, the parliamentary Affairs Minister standing in for the Finance Minister made a profound statement which tourism industry players were excited about. He said there is going to be 30 percent income tax reduction for the second, third and fourth quarter of 2021. [This], to us is very good news because we have been advocating for the tourism sector for the past year. When covid came in, the industry was badly affected and we were calling on the government to help the industry”.
“Tourism or the hospitality industry pays over twenty taxes scattered all over. Which tourism industry players are complaining every day about and we have been advocating about it. Tourism plays a major role in our economy and contributes heavily to our GDP. So, anytime we are talking about the tourism sector, we are talking about trying to revive a sector that will directly affect your GDP”.
2021 Budget Presentation
Mr. Osei Kyei-Bonsu, Majority Leader and interim Finance Minister during his presentation of the 2021 budget on Friday, March 12, 2021, said the tax will include companies within the arts, entertainment, and hospitality sectors.
He explained that, the move forms part of the government’s broader economic recovery plan to get the Ghanaian economy back to its previous state.
Earlier, government through the NBSSI disbursed GH¢37 million to creative arts practitioners who applied for loans under the CAPBuSS.
Over 24,000 beneficiaries of the program received between GH¢1,000 and GH¢200,000. The beneficiaries are from 12 creative arts associations and supported by the Creative Arts Agency.
The Ministry through GTA conducted inspections and licensing of tourism establishments and enterprises to improve the quality-of-service delivery.
In 2020, a total of 4,774 establishments (accommodation 3,804, catering 510, and travel trade 460) were inspected and licensed.
Additionally, the Ministry will continue with its inspection and licensing of tourism establishments.
Tourism Quality Assurance Programme
Meanwhile, the Ministry of Tourism has developed strategic plan and service delivery standard to guide training within the sector. This is line with establishing a leading professional hospitality and catering training center in the country.
It will be in close collaboration with West African Sub-region, the Hotel, Catering and Tourism Training Institute (HOTCATT). The Institute resumed its training activities within the year 2020 and will continue these programmes in 2021. This is implemented to produce professionals to work within the tourism industry.
The tourism sector has been one of the worst-hit sectors globally since the outbreak of COVID-19.
Tourism sector urges government to create enabling environment for sector amid pandemic
