In line with the measures being adopted globally, Ghana is seeking to implement a mix of fiscal and monetary measures to mitigate the impact of COVID-19 on the economy.
Among the key measures planned include the establishment of a Coronavirus Alleviation Programme (CAP) Business Support Scheme (BuSS) for all businesses in Ghana that have been negatively impacted by the coronavirus pandemic to facilitate economic recovery.
Against this backdrop, the business community in the Western Region have commended the Nana Akufo-Addo led government for implementing measures targeted at stimulating economic growth considering that COVID-19 has already begun to slow down economic activities and the impact could get worse in the next couple of months.
They also commended the government for implementing some tax measures to mitigate the impact of the pandemic on businesses and households like the extension of due dates for filing of tax returns from the standard four months to six months after end of the basis year and the grant of waiver of penalties on principal tax liabilities owed by taxpayers who redeem their outstanding liabilities by 30th June 2020.
According to them, companies have been granted an automatic two months extension for filing tax returns which normally was due four months after the end of their financial years.
They explained that returns covered for companies was corporate income tax and transfer pricing returns and that the extension also covered individual annual tax returns filing that also used to be done normally at the end of April each year for the prior year.
Speaking in a separate interview with Spice News, Mr. Barry Bruce Antwi, Chief Executive Officer (CEO) of Smart Trust Accounting Consultancy deemed the Program as timely and a step in the right direction and urged business owners to provide accurate information required to qualify for the facility such as ID (Voters’ ID, Driver’s License or passport) and TIN as well as any documents that may be required in order to benefit fully from the Program.
He expressed the optimism that the package will go a long way to cushion those who are looking for the best of relief on their finances to sustain their businesses and to avert job losses for employees, partners and suppliers.
However, he called on the government to put in place stringent measures aimed at recovering every money given, should beneficiaries fail in payment and recalled that over the years monies received by business operators from the government have been woefully managed leading to losses and low recovery rate.
According to him, the CAP has the objective to protect households and livelihoods, support micro, small and medium-sized businesses, minimize job losses, and source additional funding for promotion of industries to shore up and expand industrial output for domestic consumption and exports, hence the need to bring financially inclined professionals with adequate structures to safeguard the national purse from defaulters.
Mr. Antwi also called on business owners to perform an operational risk assessment, consider and plan for the impact of disruption on critical business functions, and use the money judiciously to be able to make profit and pay back without defaulting.
He argued that oftentimes business owners go for facilities and later diversify their portfolio and use the money sometimes on what he called ‘downward investments’ and other investments rather than using the money for the purpose for which they went in for the money.
Mr. Bernard Kwarteng, an importer noted that the waiver of the penalties would provide a window to taxpayers having outstanding tax obligations to avoid penalty charges although clarification will be needed on whether this waiver extends to the usually more significant interest on overdue taxes.
He was of the view that though the tax measures were expectedly temporary, as the COVID-19 situation remains fluid globally he expects more far-reaching tax measures in the future that aims at stimulating economic activities especially in the worst affected industries and revamping the country’s tax revenue sources.
According to him, the tax deduction benefit for donations and the recent announcement by the GRA to grant tax waivers for companies donating to the COVID-19 Fund should encourage businesses and individuals alike to support the government in the fight against the coronavirus pandemic.
Story: Seth Ameyaw Danquah
