Donations of stocks of equipment and goods as relief supplies for the fight against the COVID 19 outbreak will no longer attract taxes.
Parliament, this afternoon, approved tax waivers to scrap taxes such as 15% value added tax (VAT), 2.5% National Health Insurance Levy (NHIL) and 2.5% GETFund levy on COVID 19 donations.
The law makers believe the incentive will encourage individuals, corporate bodies and institutions to donate towards the fight against the Covid-19 pandemic.
In a related development, the House has also approved the Income Tax Amendment Bill 2020 to waive taxes on withdrawals from third-tier Provident Funds and Personal Pension Schemes.
Prior to the approval today, withdrawals from these funding before their maturity attracted a 15% income tax if withdrawn before 10 years by contributors in the formal sector. Contributors in the informal sector were also charged same if withdrawn before 5 years.
The purpose of the amendment bill is to provide relief to employees who have lost their jobs or whose businesses due to the Covid-19 pandemic.
In other to qualify for the tax waiver, one has to demonstrate to the satisfaction of the National Pensions Regulatory Authority and Labour Commission that his or her unemployment status is as a result of the Covid-19 pandemic.
Minority Spokesperson on Finance Ato Forson called for an amendment to the law establishing the Social Security and National Insurance Trust (SSNIT) to enable employees make Ato support themselves and their families in the wake of the COVID 19 pandemic.