The government has extended its free water and electricity for lifeline consumers to June 2021, the caretaker finance minister, Osei Kyei-Mensah-Bonsu, announced on Friday.
Presenting the 2021 Budget Statement and Economic Policy of the government in Parliament, on the theme of “Completion, Consolidation and Continuation”, Kyei-Mensah-Bonsu said the decision to extend the welfare measures is to lessen the plight of the vulnerable.
“I am happy to announce that His Excellency the president has approved the continuation of the provision of free water to up to 5 cubic metres, that is 1,000 gallons per month, to vulnerable groups,” he said.
Kyei-Mensah-Bonsu added: “In addition, we will continue to provide electricity to lifeline consumers up to the end of June 2021, when it is expected that many Ghanaians will have been vaccinated.”
In April last year the government announced its intention to absorb electricity and water tariffs to make up for lost income as a result of the COVID-19 pandemic and its attendant lockdown and restrictions.
Reprieve for commercial drivers
The government has also, with this Budget Statement, announced the suspension of vehicle income tax for commercial public transport, popularly called trotros and taxis, to reduce the cost burden of transportation under a tax relief programme.
Small businesses will also enjoy the suspension of income tax stamp payments, the Minister for Parliamentary Affairs and Majority Leader Osei Kyei-Mensah-Bonsu disclosed.
Kyei-Mensah-Bonsu also announced tax reliefs of 30% on corporate income tax to benefit hotels, restaurants, education, the arts and entertainment as well as the travel and tours sector.
“A waiver of penalty and interest on accumulated tax arrears up to December 2020 to reduce cash flow challenges will also target companies and individuals,” he noted.
Fred Dzakpata
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