Minister of State at the Presidency in charge of Tertiary Education, Professor Kwesi Yankah has announced government plans to soon scrap the 25 per cent corporate tax paid by private universities in the country.
According to him, the widely held perception that private universities are expensive is due to what he calls nuisance taxes that were slapped on such institutions by the erstwhile John Mahama-led administration in 2013.
He said the tax stifles further investment in education and makes it difficult for private universities to avoid fee increases.
Professor Yankah made the remarks at the ninth congregation of the Garden City University College (GCUC) in Kumasi where a total of 759 graduands from different faculties were presented with certificates.
“Government is working towards the removal of the 25 per cent corporate tax slapped on private universities which is a rather strange tax law that dramatically appeared in 2013 from nowhere making Ghana the first country ever known to tax private universities,” Prof Yankah stated.
“That tax deters private universities from investing any surpluses in growth expansion and innovation. It stifles further investment in education and makes it difficult for private universities to avoid fee increases. Indeed, the perception that private universities are expensive is partly due to nuisance tax as well as expensive accreditation processes whose outcomes are then passed on to students. Remove these impediments in the way of the private sector is what President Nana Akufo-Addo is saying and tuition fees will go down,” he added.
Professor Yankah also announced that processes are underway to review accreditation and policies for universities and to remove other impediments where private universities are frustrated by affiliated public universities during mentoring.
President of the Garden City University College, Dr Wilhelmina J. Donkoh on her part said the scrapping of the 25 per cent corporate tax will reduce tuition cost at private universities.
She expressed delight over the reconstruction of the Kenyasi-Antoa road which affected academic activities of the school.