GNCCI calls for tax reliefs in mid-year budget review to support businesses and drive recovery
The Ghana National Chamber of Commerce and Industry (GNCCI) is calling on the government to introduce tax reliefs in the upcoming mid-year budget review, as businesses continue to grapple with the impact of austerity measures implemented to meet the conditions of the International Monetary Fund (IMF) bailout program.
The GNCCI argues that these measures have significantly burdened local businesses and stifled economic recovery, and it is urging the government to alleviate their plight by removing some of the onerous taxes.
Clement Osei-Amoako, President of the GNCCI, emphasized the need for the mid-year budget review to demonstrate the government’s commitment to supporting businesses in distress. Osei-Amoako highlighted that while the reforms introduced under the IMF program were intended to restore fiscal balance and promote economic stability, they have resulted in escalating operational costs for businesses, leading to the collapse and relocation of many local enterprises.
The GNCCI specifically pointed out tax measures such as Excise Duty, Growth and Sustainability Levy, as well as high utility tariffs, currency depreciation, and fuel price hikes, which have all had a detrimental impact on businesses. Osei-Amoako called for a revision or relaxation of taxes such as the COVID-19 Levy and Growth and Sustainability Levy. Additionally, the GNCCI stressed the importance of the government adopting innovative strategies to broaden the tax base.
Furthermore, the Chamber expressed concern about the exorbitant fees and charges imposed on producers when importing raw materials for local production. The GNCCI argued that the current high import duties on raw materials and machinery hinder the government’s goal of promoting industrialization and supporting domestic businesses to compete effectively within the African Continental Free Trade Area (AfCFTA).
These appeals from the GNCCI were made during the launch of the Chamber Bazaar event in Accra. The Chamber Bazaar serves as a platform for businesses to showcase their products, services, and innovative ideas to a diverse audience, aiming to bolster local enterprises and contribute to Ghana’s overall economic growth. The GNCCI remains committed to its legislative mandate of safeguarding the commercial and industrial interests of the country.
Guests at the launch, including Natty Davis, Vice President of the Liberia National Chamber of Commerce, commended the GNCCI for its forward-thinking initiatives aimed at supporting business growth. Mr Davis expressed interest in fostering collaboration between the Liberian and Ghanaian Chambers to leverage each other’s strengths and enhance intra-African trade.
