The Chief Executive of the Ghana National Chamber of Commerce and Industry (GNCCI) Mark Badu-Aboagye has disclosed that some businesses and manufacturing firms are exploring ways to avoid paying more taxes, while others are looking at shutting down their operations.
According to him, a lot of businesses are unhappy with recent steps taken by the Ghana Revenue Authority to collect taxes – a move they describe as harassment.
Mr. Badu-Aboagye made the statement on PM Express Business Edition on the Topic: 2024 Budget Presentation: What do Businesses want?
“Currently Inflation rate is above 40 percent, Policy Rate is pegged at 30 percent , an environment that utility tariffs are changing every quarter and the tax rates are at levels that any business cannot be excited about”, he lamented.
“If you want to know how your economy is, look at your exchange rates”, he added.
He stated that the situation could be blamed on the low revenue inflows government is making since businesses are not making enough profit to pay levies.
“Ghana is not getting the right revenue levels, because we have not been that efficient when it comes to collections” he said.
2024 Budget Presentation and inputs from businesses
Highlighting some inputs made into the yet-to-be presented national budget, Mr. Badu-Aboagye disclosed that businesses pushed for the removal of the COVID-19 Levy.
He added that there were also recommendations for the VAT rates to be reviewed.
“These were some of the proposals the GNCCI presented when we engaged the Ministry of Finance as government takes inputs from businesses for the 2024 Budget Presentation”.
Speaking on the same programme, Tax Consultant, Francis Timore Boi predicted that there could be new taxes in the 2024 budget.
He added that there could be tax hikes as well to help government meet its revenue projections.
Mr. Timore Boi however advised the GRA to be efficient in its operations to block loopholes in the system.
2024 Budget Presentation and Stabilizing Ghana’s economy
Senior Lecturer at the University of Ghana Economics Department, Dr. Priscilla Twumasi Baffouron her partnoted that a lot more needs to be done to ensure that there is value for money, to help contain the budget deficit .
“What Government needs to do is to keep expenditure in check going into next year”, she said.
On the taxes, Dr. Baffour sympathized with businesses adding that there is the need to support local enterprises from high taxes.
“When you are trying to recovery, any government must be careful on how it tax businesses, especially going into 2024”, she said.
On the Focus of the 2024 budget, Dr. Baffour explained that whiles Macro- Economic stability is very important there is the need to look at structural issues.
“We should also work hard to deal with some of structural issues going forward, especially when it comes to the Agricultural sector” she added.
“Tackling the value addition based is very important going forward and will help build the necessary shock absorbers”, she maintained.
Dr. Baffour noted that “This is not a budget that we should be expecting some big things, looking at the fact that Ghana is currently under an IMF Programme”.
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