With the on-going discussions at the government level for a possible review of some clauses concerning tax exemptions, it is being anticipated that there will be a scrapping of some of the tax waivers for multinationals and mining firms in order to complement revenue generation in the country.

Discussions between finance ministry and Ghana Revenue Authority chieftains have intensified recently, ahead of the unveiling of the 2019 budget later this week and this has put some of the biggest beneficiaries of tax exemptions on edge.

The International Monetary Fund (IMF) in the fifth and sixth review under the extended credit facility recommended that although several sectors benefit from reduced corporate tax rates and tax holidays, some of these tax holidays can be discontinued – mutual funds, venture capitals – while others can be replaced by a system which better targets investment. The Fund wants stronger action in this regard – the actions agreed with government for implementation in 2018, would only improve tax revenues by a mere GHS70 million, or 0.03 percent of GDP.

In 2017 alone, import exemptions granted to foreign companies and other institutions rose by 15.5 percent to GHS2.6 billion.