The CEO of the Ghana National Chamber of Commerce and Industry (GNCCI), has called on the incoming government to prioritise the removal of specific taxes, including the COVID-19 levy and controversial e-levy.
Mark Badu-Aboagye also want the new Mahama administration to address the high rates of VAT.
Speaking on Joy News’ PM Express, Business Edition with George Wiafe, he underscored the burden these taxes place on businesses and their cascading impact on consumers.
“For me, the first tax I expect President-elect John Mahama to take out is the COVID-19 levy. We’ve said it over and over again at the Chamber of Commerce there is no need for this tax anymore,” he stated.
He also criticised the e-levy, describing it as a “brilliant idea” marred by poor implementation.
“Probably, they also have to take [the e-levy] out because it’s been promised. Now, we are going to hold them accountable for the promises they’ve made to the business community because the taxes themselves are killing businesses,” Mr Badu-Aboagye said.
Mr Badu-Aboagye described the current business environment as “extremely harsh,” attributing much of the strain to Ghana’s tax regime.
He highlighted the cumulative effect of the Standard VAT, which is 15%, and additional levies that push the total rate close to 21%.
“These levies translate directly into the cost of production and have a cascading effect on prices and consumers,” he explained.
The VAT needs to be reviewed.”
He shared an anecdote from a recent meeting with a Chamber member who expressed frustration over the crippling effect of taxes on their business.
“Yesterday, we met one of our members, and he was complaining about taxes. He told us how import duties and several other taxes have made it nearly impossible for his business to thrive,” Mr Badu-Aboagye recounted.
No comment yet, add your voice below!