The challenges facing Ghana’s theatre and entertainment industry are becoming increasingly apparent, with rising production costs and limited revenue streams creating a difficult environment for industry stakeholders.
One of the most pressing issues is the 21.9% tax on ticket revenue imposed by the Ghana Revenue Authority (GRA), which experts believe is hindering growth in the sector.
Industry players are calling for reforms to address the tax burden and high operational costs that are squeezing producers, artists, and audiences alike.
The Africa Arts Network (AAN) founder, Kofi Adinkra, emphasized the importance of theatre and live entertainment in Ghana’s cultural identity and economic development, highlighting how the tax on ticket revenue is making it challenging for productions to even break even.
Multiple taxation points, including venue rentals, production-related goods and services, and professional fees, further exacerbate the financial strain on producers, reducing profitability and sustainability for theatre productions and live events.
High production costs, coupled with narrow profit margins, are making it increasingly difficult for productions to thrive in the current economic climate.
The recent production of “You Play Me I Play You” by the Africa Arts Network highlighted the financial challenges faced by producers, with Mr.
Adinkra revealing the struggles of covering expenses and taxes while trying to break even. The organization is now exploring alternative strategies, such as implementing an open free gate policy and seeking donations to support upcoming events.
The impact of these financial pressures extends beyond producers to audiences and Ghanaian culture as a whole.
Rising ticket prices due to taxes can alienate audiences, making theatre and entertainment events less accessible and limiting the spread of cultural expressions. Mr. Adinkra stressed the importance of preserving cultural heritage through accessible and affordable productions.
In response to these challenges, the Africa Arts Network is advocating for tax reforms and proposing measures to support the industry’s growth.
These include a zero-rated tax on ticket sales, tax incentives for productions promoting Ghanaian culture, reinvestment of tax revenue into grants and subsidies for the arts, and fostering public-private partnerships to support creative projects.
A thriving theatre and entertainment industry could have significant economic and social benefits for Ghana, including job creation, tourism growth, and global recognition of Ghanaian culture.
