IEAG rejects proposed Income Tax Amendment Bill and Excise Duty Tax
The Importers and Exporters Association of Ghana has issued a statement regarding the proposed Income Tax Amendment Bill and Excise Duty Tax, which are currently under consideration by the Finance Committee of Parliament. According to the statement, the Association believes that these two taxes will have a negative impact on Ghana’s business community and the economy as a whole.
The Income Tax Amendment Bill proposes changes to the existing Income Tax Act, 2015 (Act 896) with the aim of improving revenue collection and compliance with tax laws. The bill seeks to introduce new taxes on capital gains, interest on government securities, and rental income. However, the Importers and Exporters Association of Ghana is of the view that these proposed changes represent a lazy approach by the government and are unlikely to achieve the desired results of stabilizing the economy.
Similarly, the Excise Duty Tax seeks to revise the excise duty rates on specific goods and services. While the government argues that this measure is necessary to shore up Ghana’s revenue, the Importers and Exporters Association of Ghana believes that it will only compound the already existing challenges facing local businesses.
The Association’s statement expresses support for the National Democratic Congress (NDC), which has called on its Members of Parliament to vote against the proposed bills. The Association also urges the majority MPs to follow suit in rejecting the bills and demonstrate their support for the business community.
It is worth noting that the Importers and Exporters Association of Ghana had previously expressed its displeasure with the Akufo-Addo government’s mismanagement of the country’s economy following the President’s state of the nation address on 8th March 2023. The Association’s latest statement is in line with its position that the government’s approach to taxation is not conducive to business growth and is contributing to the folding of many businesses in Ghana.
The Importers and Exporters Association of Ghana’s call for a public vote on the proposed bills is a demonstration of its commitment to transparency and accountability in the legislative process. The Association believes that making the voting process public will enable Ghanaians to hold their elected representatives accountable for their decisions.
The Importers and Exporters Association of Ghana’s statement highlights the concerns of the business community regarding the proposed Income Tax Amendment Bill and Excise Duty Tax. While the government argues that these measures are necessary to boost revenue, the Association believes that they will only exacerbate the challenges facing local businesses. The decision to pass or reject these bills ultimately rests with Parliament, and it remains to be seen how the legislative process will unfold in the coming days and weeks.
