The Ghana Hotels Association has described as inadequate the tax rebate provided by government in the 2021 Budget Statement.
Speaking to the media on the issue, President of the Ghana Hotels Association, Dr Edward Ackah Nyamike, averred the 30 per cent tax rebate offered by government is insufficient to cushion the industry from the huge losses suffered last year due to the Covid-19 pandemic.
According to him, the industry is yet to embark on a significant recovery hence a stimulus package that focuses on the input end of operations in the industry rather than the output end of would have been much better.
Adding, it will be a miracle for any hotel in the country to declare profits for 2020, 2021 or even 2022 to be able to enjoy the 30 per cent rebate on income tax.
“Under normal circumstances the 30 per cent tax rebate would have been good news and welcomed, but we are not in normal times and for an industry that is yet to embark on a significant recovery, a stimulus package that focuses on the input end rather than the output end would have been better,” he posited.
“It will be a big miracle for any hotel to declare profit for 2020, 2021 or even 2022 because we have large debts that have not yet been settled,” Dr Nyamike added.
Government, at the height of the Covid-19 pandemic in 2020 introduced a number of initiatives to cushion the effects of the pandemic on the populace and businesses. However, some sectors of the economy such as the hotel industry continued to suffer the devastating impacts of the pandemic.
In view of this government in the 2021 Budget Statement announced additional reliefs it intends to offer to the sectors of the economy still suffering from the pandemic.
The additional reliefs include a 30 per cent tax rebate on income tax for hotels and restaurants, education, arts & entertainment, travel and tours companies for the second, third and fourth quarters of 2021.
The other reliefs are; suspension of quarterly income tax instalment payments for the second, third and fourth quarters of 2021 for small businesses using the income tax stamp system.
The suspension of 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. And the extension of the waiver of interest as incentive for early payment of accumulated tax arrears.
