Companies within the arts, entertainment, and hospitality sectors will enjoy a tax break from the government as part of measures to alleviate the scourge of the coronavirus pandemic on them.
This was made known by Minister for Parliamentary Affairs and interim Finance Minister, Osei Kyei-Mensah-Bonsu during the 2021 budget statement and economic policy presentation in Parliament on Friday, March 12, 2021.
“The government will provide Corporate Income Tax rebate of 30% to companies hard hit by COVID-19 pandemic for Quarter 2 to Quarter 4 of 2021. Targeted companies include those in the accommodation and food services, education, arts and entertainment, and travel and tour operators,” he said.
He said this forms part of the government’s broader economic recovery plan to get the Ghanaian economy back to its previous state.
Since the outbreak of the coronavirus pandemic, a lot of activities in the creative and tourism sectors have come to a halt.
Creatives have lost their sources of livelihood because they can no longer hold concerts, movie premieres, and other theatrical performances.
The tax rebate will be the second step government has taken to help cushion people in the entertainment and hospitality sectors against the COVID-19 effects.
Already, the National Board for Small Scale Industries (NBSSI) has disbursed GH¢37 million to creative arts practitioners who applied for loans under the Coronavirus Alleviation Programme Business Support Scheme (CAPBuSS).
The 24,464 beneficiaries have since invested their share of the fund in their respective businesses to save the sector from the negative impact of the COVID-19.
The beneficiaries, who received between GH¢1,000 and GH¢200,000, are from 12 creative arts associations that were supported by the Creative Arts Agency (CAA).
They include people in the garment and textiles sub-sector, photographers, hairdressers and beauticians, musical instruments and electronic dealers, furniture makers, music producers, event and meeting professionals, artisans, smock, and Kente weavers, leather dealers and makers, goldsmiths and jewelers, musicians and film producers.