Renowned Ghanaian musician Kwabena Kwabena has called for a review of the tax system imposed on events in the country. In an interview on Hitz FM, the singer expressed his concerns about the current tax regime, which he believes is unfair to creatives and event organizers.
According to him, the 21.9% tax on events should be deducted from the net profit, rather than being imposed on every ticket sold. He argued that this would allow creatives to make a profit from their shows before paying taxes.
“It’s something that has to be reviewed because a lot goes into events in terms of expenditure.
So you invest so much and then somebody comes to your door and say that ‘I’m going to take 21.9% of every ticket you’ve sold,'” he said
When asked how would he want it to be done, he said: “I think it has to be done after net.
I need to pay taxes after I have been able to break even and make some profits.”
The “Asor” hitmaker’s proposal is aimed at promoting fairness and sustainability in the entertainment industry. By taxing net profits instead of gross ticket sales, event organizers and creatives would be able to retain more of their earnings, invest in their craft, and create more jobs.
The current tax system has been a subject of debate among industry stakeholders, with many arguing that it stifles creativity and innovation. Kwabena Kwabena’s call for reform is likely to resonate with many in the industry, who are eager to see a more supportive and enabling tax environment.
As the conversation around tax reform continues, it remains to be seen whether Kwabena Kwabena’s proposal will gain traction with policymakers. However, one thing is clear: the entertainment industry is ripe for reform, and creatives like Kwabena Kwabena are leading the charge.
