The Chamber of Commerce and Industry France Ghana (CCIFG) held a Business Breakfast with KPMG to give an update on the 2017 Budget and its implication on businesses across sectors. The Business Breakfast, facilitated by KPMG - leading providers of Audit, Tax and Advisory Services - gave opportunity for participants to benefit from the information shared, during a comprehensive and interactive presentation. The Business Breakfast, held on 11th May at LUCAS College in Dzorwulu, gathered 70 business executives from different industries in the country, comprising both CCIFG members and non-members.
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The main-speaker, facilitating the discussion was Mr Anthony Sarpong, a Partner at KPMG and Head of Audit and Risk Management. The presentation was given in two parts: Global Themes and Ghana’s Macro Economy; and the 2017 Budget Pillars - its Policy & Initiatives. The keynote speaker touched on the global themes that are shaping the economy on an international spectrum, which includes the Brexit referendum, the currency dynamics that arise, and the impact of automation on jobs as well as the rise of FinTechs. The facilitator went on to give the Macroeconomics target set in the 2017 budget which forecasts the 2017 GDP growth at 6.3%, adding that by removing the oil sector, the growth would go down to 4.6%. He shared with participants some key economic themes which will have the highest impact on the economy.
In the second part of his presentation, Mr Sarpong explained the 4 pillars that the 2017 Budget relies on: Tax incentives; Fiscal discipline; Economic growth; and Job creation. He highlighted on sector specific fiscal policy through key changes that have seen implementation such as the removal of certain taxes (examples being 17.5% VAT/NHIL on financial services and the reduction of special petroleum tax rate from 17.5% to 15%), and also on some tax relief measures that are yet to be implemented (example being the abolition of duty imports on spare parts). The presentation was concluded with focus on the opportunities and constraints that have arisen which affects the Private Sector.
The Business Breakfast ended with a Question & Answer session which gave participants the opportunity to raise issues and concerns that were adequately addressed by KPMG. The 2017 Budget, presented to and approved by Parliament, is set within the context of the International Monetary Fund’s three-year Extended Credit Facility programme with Ghana, as well as the country’s medium term vision and priorities of the current Government.