Do not sacrifice the survival of businesses for IMF bailout programme – Consultative Forum of Ghanaian Businesses
The Joint Consultative Forum of Businesses in Ghana, says Government should not sacrifice the survival of businesses in the country with the recently passed three tax revenue streams for an IMF bailout.
According to the Forum, the anticipated $3bn IMF bailout programme will amount to nothing if businesses in the country collapse over the high incidence of tax burden on businesses.
Speaking on behalf of the Forum on Tuesday, April 4, 2023, President of Ghana Union Traders Association (GUTA), Dr Joseph Obeng, averred government could have adopted a different strategy for enhancing revenue generation in the country as a better alternative to the IMF programme rather than passing the amended tax bills.
“Businesses are already overburdened with numerous taxes. Therefore, the implementation of these new taxes will lead to the collapse of businesses in the country. That again, the taxes will have rippling and cascading effects on businesses and the consuming public as well. We do not believe the IMF seeks the destruction of businesses in the country,” he quipped.
Dr Obeng made the assertions registering the Forum’s total disapproval of the passage of the amended tax bills which include the Excise Duty Amendment Bill 2022, the Growth and Sustainability levy Bill 2022. The Ghana Revenue Authority Bill 2022 and the Income Tax Amendment Bill 2022.
The Joint Consultative Forum of Businesses in Ghana is made up of the Ghana National Chamber of Commerce and Industries (GNCCI), Ghana Union Traders Association (GUTA), Importers and Exporters Assoyof Ghana (IEAG), Ghana Freight Forwarders (GIFF), Asante Businesses Association and the Pharmaceutical Association of Ghana.
Parliament has approved new tax measures expected to raise an additional $340 million in revenue in a bid to meet requirements for the International Monetary Fund’s $3 billion bailout program.
In a tight vote, the country’s hung parliament passed the measure 137 to 136.
The bills will increase some income taxes and corporate taxes, as well as the excise duty on cigarettes and various alcoholic and sweetened beverages.
Ghana is restructuring most of its public debt, which stood at about 575.7 billion cedis ($47 billion) at the end of November, to qualify for the IMF support package.
The taxes will help facilitate IMF approval for the funding after bilateral creditors give the necessary financial assurances.
Ghana is now targeting an agreement by the end of April, after the March deadline was missed.
