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Tax Update and other Economic and Social Interventions

Tax Update and other Economic and Social Interventions

As per our previous tax update, we indicated that, we will update you on any tax stimulus package the Government rolls out in response to the Covid-19 pandemic. Therefore, this alert intends to provide an update of such tax and other social and economic interventions thus far.

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The Issue

The Covid-19 pandemic continues to pose health and economic risks and as such, the Government of Ghana and businesses continue to respond to the risks and uncertainties arising from the virus in various ways. To this end, the President of the Republic of Ghana through his fifth address to the nation on Sunday, 5 April 2020 announced that:

— Taxes will not be paid on the emoluments of health workers for April, May and June 2020.

 — He further stated the following interventions to alleviate the impact of the pandemic on the citizenry:

• Coronavirus Alleviation Programme (CAP) – its objective is to protect households and livelihoods, support micro, small, and medium-sized businesses, minimise job losses, and source additional funding for promotion of industries to shore up and expand industrial output for domestic consumption and exports.

• Government will absorb water bills of all Ghanaians for April, May and June 2020 - As frequent washing of hands under running water has become a necessity, it has become incumbent on government to provide this relief in order to promote the agenda of complete eradication of the spread.

• Government will collaborate with the National Board for Small Scale Industries (NBSSI), Business & Trade Associations and selected Commercial and Rural Banks to roll out a soft loan scheme up to a total of six hundred million cedis (GH¢600 million), which will have a one-year moratorium and two-year repayment period for micro, small and medium scale businesses.

• Procurement of additional personal protective equipment (PPE) for frontline health workers which will include the government engaging local manufacturing companies to assist with domestic production of PPEs.

 • An insurance package, with an assured sum of three hundred and fifty thousand cedis (GH¢350,000) for each health personnel and allied professional at the forefront of the COVID-19 fight and for contact tracers, a daily allowance of one hundred and fifty cedis (GH¢150).

 • An additional allowance of 50% on the basic salary (March, April, May and June 2020) of frontline health workers.

• Free ‘Aayalolo’ buses to convey health workers in Accra, Tema, Kumasi and Kasoa to and from work, along specific routes, for the entire duration of the restrictions.

© 2020 KPMG, a Ghanaian registered partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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