Section 8 of the Sixth Schedule of the new tax act, Income Tax Act, 2015 (Act 896), provides tax rebates to companies who employ fresh graduates.
The deduction is as follows
1% of workforce is fresh graduates – 10% of their salaries and wages is deductible
More than 1% but less than 5% of workforce is fresh graduates – 30% of their salaries and wages is deductible
Above 5% of workforce is fresh graduates – 50% of their salaries and wages is deductible
And “fresh graduate” per the Act refers to anyone who has graduated from a tertiary institution for the first time. Their age or previous experience is irrelevant.
This is a decent policy to encourage the employment of fresh graduates. GRA has to do more in terms of communicating this policy.
“If the percentage of fresh graduates in the workforce is between 1-5%, the tax credit would be 40% of salaries and wages and if the percentage of fresh graduates in the workforce is between above 5%, the tax credit would be 60% of salaries and wages,” Dr Bawumia (02/12/15)
http://www.myghanaonline.com/1.8470959
I remember you discussed it too , analysing Dr Bawumia’s Economic Vision http://ceditalk.com/2015/12/02/analysing-dr-bawumias-economic-vision/.
Just curious you don’t find it reference worthy in this article.
I remember. Thanks for bringing it up