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- 6 Marks
Question
Location of certain businesses creates value addition to owners of businesses. In light of the government agenda to accelerate development across certain geographical locations, tax policies are often used to create that drive in response to the 1992 Constitution that requires balanced growth of the country.
Required:
Identify THREE (3) categories of persons that stand to benefit from locational incentives and state their respective benefits.
Answer
Categories of persons and their benefits include:
- Farming, Agro-processing, and Cocoa by-products businesses
- Tax rate varies based on location:
- Accra/Tema: 20%
- Regional capitals outside the northern savanna ecological zone: 15%
- Other areas outside the northern savanna ecological zone: 10%
- Northern Savanna Ecological Zone: 5%
- Tax rate varies based on location:
- Young entrepreneurs up to 35 years old in specific industries (e.g., manufacturing, agro-processing, waste processing, ICT, tourism, creative arts, farming, energy, horticulture, and medicinal plant)
- Tax rate varies based on location:
- Accra/Tema: 15%
- Regional capitals outside northern regions: 12.5%
- Other areas outside northern regions: 10%
- Northern regions: 5%
- Tax rate varies based on location:
- Manufacturing Concerns
- Tax rebate based on location:
- Accra/Tema: 25%
- Regional capitals: 18.75%
- Other areas: 12.50%
(6 marks)
- Tax rebate based on location:
- Tags: Agro Processing, Farming, Locational tax benefits, Tax rebates
- Level: Level 3
- Topic: Tax administration in Ghana
- Series: MAR 2024
- Uploader: Joseph