The Director of Corporate Affairs at the National Entrepreneurship and Innovation Programme (NEIP), Joseph Osei Oppong Brenya, has challenged the opposition National Democratic Congress (NDC) over its promise to introduce tax exemptions for Small and Medium Enterprises (SMEs), saying “such tax benefits are not new and are already in place through existing programmes administered by NEIP”.

The NDC had recently proposed new tax exemptions as part of its broader economic policy aimed at bolstering the SME sector should they win the 2024 general elections.

In a media interview, Mr. Brenya emphasised that NEIP had been providing tax relief to SMEs for some time. He explained that NEIP’s existing framework allows businesses to apply for tax exemptions, effectively addressing the same concerns that the NDC aims to tackle.

He explained that under NEIP’s programme, SMEs can access various forms of tax relief, including exemptions from certain taxes and deductions on business-related expenses.

“The tax exemption initiative proposed by the NDC is not a new concept. We have had a functioning program in place through NEIP that already offers these benefits. The Nana Addo Dankwa Akufo-Addo government, through the Finance Minister, announced tax exemptions for SMEs through NEIP, so if you are an entrepreneur and want to enjoy tax exemption, all you have to do is to write to our office and we will work together with Ghana Revenue Authority to grant you tax exemption. The NDC are aware but they decided to add it to their manifesto to deceive the masses,” he said.

He noted that the NDC had never sustained any intervention, and cannot be trusted when it comes to social interventions. “Former President Kufour introduced NHIS, Metro Mass Transit, school feeding, capitation grant, free bus ride for students and many more, but the NDC took over and collapsed all these interventions; it took Nana Akufo-Addo government to revive all these interventions,” he added.

He touted the NPP government’s track record in supporting SMEs, noting that NEIP had trained 19,000 entrepreneurs, and provided funding to over 4,350 of them. He indicated that, this year alone, 26,000 SMEs had received training, with 5,000 set to receive funding.

Mr. Oppong Brenya also addressed former President John Mahama’s promise of a two-year tax exemption for young entrepreneurs, describing it as “nothing new.” He pointed out that the current government already offers a five-year tax exemption for young entrepreneurs aged 18 to 40 who were either starting a business or already operating one.

He emphasised that this policy had been in place since the establishment of NEIP in 2017, which was initiated by President Akufo-Addo to foster entrepreneurship and support business growth across Ghana.

He noted that the only difference might be a reduction of the exemption period from five years to two years. He reiterated that the existing tax exemptions for young entrepreneurs under the current government render the NDC’s proposal unnecessary and redundant.