The tax cuts which were well expected are in fulfilment of the campaign promise to the people of Ghana prior to the 2016 general elections.

Head-porters (Kayayei) have been relieved of the market levies imposed on them by local authorities. Government has also replaced the 17.5% VAT/NHIL with 3 % flat rate for traders.

According to the Finance Minister, some taxes have also been reduced including;

• Special Petroleum Tax Rates reduced from 17.5% to 15%
• National Electrification Levy reduced from 5% to 3%
• Public Lighting Levy reduced from 5% to 2%
• Excise duty on petroleum

The following taxes have also been abolished
•    Duty on imported Spare parts
•    17.5 % VAT/NHIL on financial services
•    The 1 % Special Import Levy
•    17.5 % VAT/NHIL on selected imported medicines, that are not produced locally
•    17.5 % VAT/NHIL on domestic airline tickets
•    5 % VAT/NHIL on Real Estate sales
•    Tax credits and other incentives for businesses that hire young graduates from tertiary institutions
•    Tax Incentives for Young Entrepreneurs
•    Duty on imported Spare parts
•    Corporate Income Tax to be progressively reduced from 25% to 20% in 2018

Mr. Ofori- Atta also indicated that the tax cuts are to provide better and conducive business environment for the private sector to spearhead the quest for economic growth and job creations.