Ghana Chamber of Commerce Chief warns of tax burden strangling business growth
Mark Badu-Aboagye, the Chief Executive of the Ghana Chamber of Commerce and Industry, has raised a red flag over the burgeoning weight of both direct and indirect taxes on businesses within the country.
In an interview on Joy Business’ PM Express on Thursday, Mr Badu-Aboagye questioned the long-term viability of sustaining profitability amidst a relentless surge in costs and taxation, characterizing the current tax regime as punitive rather than supportive of entrepreneurial endeavors.
He stressed the imperative of not merely imposing new taxes but of scrutinizing their efficacy and ramifications on businesses. The relentless influx of new tax policies, he argued, is stifling rather than nurturing business expansion, with many enterprises grappling to meet their financial obligations.
“I think that our taxes have become more of a punishment to businesses than to support them. This is because we cannot pay, but they’re expecting you to pay.
“They are beating us but they are telling us to keep quiet,” he remarked.
Economic indicators, particularly Ghana’s GDP, served as a barometer for Mr Badu-Aboagye’s concerns. He underscored a tepid GDP growth trajectory, citing persistently lackluster performances across various sectors, notably the industry sector, which suffered consecutive quarters of negative growth in 2023.
“As of the third quarter of 2023, the growth of GDP was 2%. And when you look at the details you will realise that most of the sectors are not doing well. Consistently from the beginning of the year to now. The industry sector has recorded negative growth. It’s only in the last quarter that the manufacturing sector recorded a 2% growth. So it shows clearly that businesses are not doing well.
“If they are doing well, they produce a lot and by multiplying it by the market value, you will see that your GDP will go higher. So it’s not far-fetched, if the government wants to know the state of businesses in Ghana, just check the GDP,” he posited.
Mr Badu-Aboagye’s narrative elucidates a stark reality: Ghanaian businesses are contending with an onerous fiscal landscape, impeding their ability to thrive and contribute meaningfully to the nation’s economic prosperity.
This calls for the need for policymakers to undertake a nuanced evaluation of tax policies, prioritizing measures that foster an environment conducive to sustainable business growth. Failure to address these challenges risks further dampening the prospects of Ghana’s entrepreneurial ecosystem and jeopardizing its economic resilience.
