GNCCI, GUTA, IEAG, others up in arms against newly passed tax revenue bills
The Joint Consultative Forum of Businesses in Ghana made up of various trade associations in the country, have expressed their total displeasure against the passage of the three new tax revenue measures by government.
According to the Forum, the passage of the three new bills will further entrench the high incidence of tax burden on local businesses.
“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,” remarked President of the Ghana Union Traders Association (GUTA), Dr Joseph Obeng.
According to the Forum, the numerous taxes imposed on businesses are impeding the growth and productivity of businesses, adding that Ghanaian businesses have become very uncompetitive in cross-border trading in the sub-region.
“Ghanaian businesses are becoming irrelevant in the scheme of affairs of the African Continental Free Trade Area,” the Forum further noted.
Speaking further on behalf of the Forum, Dr Obeng attributed the high inflation in the country to the numerous taxes imposed on businesses in the country and not excess liquidity in the economy as often posited by the Bank of Ghana.
To increase tax revenue without the need for further hikes in taxes, the Forum urged government to enforce greater compliance to existing taxes by businesses in the country.
Parliament passes three tax bills
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.
