2021 Budget: Good news for trotro, taxi drivers
Government has announced the suspension of vehicle income tax to
benefit owners of commercial public transport, popularly called trotros and taxis.
This, the Caretaker Finance Minister Osei Kyei-Mensah-Bonsu,
said is aimed at reducing the cost of transportation under its tax relief programme.
Presenting the 2020 Budget statement to Parliament on Friday,
the Suame Member of Parliament (MP) said the government is suspending the
“quarterly instalment payments of the vehicle income tax for the third and
fourth quarters of 2021 for trotros and taxis as part of measures to
reduce the cost of transportation.”
2021 Budget: Good news for trotro, taxi drivers – The Parliamentary Affairs Minister
explained that it is part of efforts by the government to
bring relief to different sections of the population,
especially those hardest hit by the pandemic.
2021 Budget: Good news for trotro, taxi drivers – The Suame MP
also announced a tax rebate of 30 per cent on the income tax
due for companies in hotels and restaurants, education,
arts and entertainment, and travel and tours for the second,
third and fourth quarters of 2021.
For operators of small businesses using the income tax stamp system,
government is suspending the quarterly income tax instalment
payments for the second, third and fourth quarters of 2021.
There is also an extension of the waiver of interest as an incentive
for early payment of accumulated tax arrears.
There will be “a waiver of penalty and interest on accumulated
tax arrears up to December 2020 to reduce cash flow challenges
for companies and individuals who arrange terms with
GRA to pay up the principal by September 2021.”
The Caretaker Finance Minister stressed that “beneficiaries
of these relieve will have to be registered with the Ghana Revenue
Authority and must have fulfilled their first quarter tax obligations.”