Prime News Ghana

Gov't to introduce new Startup Bill with 8years tax holidays

By Justice Kofi Bimpeh
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The Business Development Ministry will in the coming days present to cabinet a new Startup Bill to help small businesses to thrive.

Business Development Minister Dr Ibrahim Mohammed Awal who disclosed this said processes are underway to introduce a startup bill that will create an enabling environment for small businesses.

According to him, the bill when passed into law will exempt startup businesses from paying taxes up to 10 years.

He explained that the current government has created about 104,000 jobs in the last four years for young people and will soon introduce the bill to further grow the startup business sector.

"We created about 104,000 jobs in the last four years for young people, we are dropping a startup economy in the next few weeks we are going to present a bill to the cabinet, a startup bill where this bill will seek to provide tax holidays to up to 8years. So when you start a business for it up to 8years to 10 years you will not pay tax, this is for young people to reinvest the profit and expand the business."

"In Ghana, small businesses constitute about 80% of the economy but the startup economy is not the best in this country. When businesses start they don't last, the statistics show that only 50% of businesses go beyond their founders," he added.

The National Board for Small Scale Industries (NBSSI) is also set to implement an entrepreneurship support scheme meant to digitise the operations of 500 small and medium enterprises (SMEs) in the country.

Partnered by the German Development Agency (GIZ), the scheme seeks to equip SMEs with the needed digitalisation tools and financial support to enable them to enhance their operations.

It is expected to be rolled out in the third week of October this year and run until March 2021.

The Executive Director of NBSSI, Mrs Kosi Yankey-Ayeh, made this known to the Daily Graphic at the NBSSI Roundtable for Women Entrepreneurs on Wednesday, in Accra.

On the theme, “Going Digital, a must to building resilience in the age of technology,” the event created the needed platform for participants to share ideas on how best to grow their businesses.

Mrs Yankey-Ayeh underscored the need for small and medium enterprises, especially women-owned businesses, to embrace technology as a key tool for transforming their businesses.

She said technology provided endless opportunities of growth for SMEs, and there was, therefore, the need to incorporate it into the day-to-day running of the business.

“SMEs adoption of modern technology has been on the table for quite some time, COVID-19 only came to amplify it.

“During the lockdown periods, digital infrastructure became critical to mitigate the impact of stay-at-home restrictions. Not only did digital technology offer alternatives, but also convenience,” she said.