The Ghana Investment Promotion Center (GIPC) has offered a five year tax holiday for new, wholly-owned Ghanaian agro-processing companies which use only local agricultural inputs as their raw material base.
The move together with the waiver of the payment of a minimum foreign capital needed for companies’ registration under the GIPC Act, is part of a grand scheme to allow starter businesses enjoy free incentives and tax rebates to ensure their survival and viability.
A fact sheet made available to Ghana News Agency (GNA) indicated that, the goal is to help these industries find their feet and thrive in a conducive manufacturing business environment – a critical pre-requisite for the building of a strong micro-economic stability.
After the initial 5-year tax holiday period, these industries shall as part of the package have corporate tax rates fixed according to their location – those based in Accra and Tema would enjoy 20 per cent tax relief whiles the other regional capitals excluding the three Northern regions, would have a relaxed tax of 10 per cent.
“GIPC believes as efforts are directed towards improving the current economic conditions prevailing in the country, it will boost the confidence of both existing and potential investors to retain and invest in the country”, the document said.