IEAG calls for removal of 1% Covid-19 levy in 2023 budget
The Importers and Exporters Association of Ghana is calling on the Government of Ghana to remove the 1 percent Covid-19 Health Recovery Levy in the 2023 Budget Statement, following an assurance by the Majority Leader, Osei Kyei Mensah Bonsu.
The Majority Leader gave the assurance ahead of the reading of the 2023 Budget Statement, which is scheduled for November 24.
In an interview with the media, General Secretary of the Importers and Exporters Association of Ghana, Samson Asaki Awingobit, said the government must do all it can to cushion the business community in its 2023 budget statement especially removing all nuisance taxes that make the cost of doing business in Ghana expensive.
Mr. Awingobit, inferring the obsolescence of the levy, questioned its importance a year after its introduction and the disbursement of the proceeds.
“Government should tell us when that 1% Covid-19 levy they have been taking will end, because we are no longer in Covid-19 era”, he quizzed.
He also bemoaned the other numerous taxes that his members are expected to pay in their channel of trade, which he said is greatly impacting their trade.
“The other aspect is that we expect the government to, as a matter of fact, withdraw the VAT Amendment Act rate for us because we are paying so much at the port and if you are not able to recoup what you spent at the port at the end of the day after you make sales, then that becomes a challenge to the business community.”
“If the Government will not give us certain tax rebates, then Government should not come to introduce new taxes because currently, the cost of doing business in Ghana is very costly already.”
The Covid-19 Health Recovery Levy is a stand-alone levy applied to the gross value of taxable supplies of goods and services provided under the Standard Rate and VAT Flat Rate Schemes.
The levy was introduced in 2021 by the government as part of revenue mobilisation measures to help fight the Covid-19 pandemic which bedeviled the Ghanaian economy.
