High Tax Rates, Port Tariffs, Poor Cedi Under NPP decreased Many Businesses – Entrepreneur
The economy of Ghana has declined immensely in the recent years, and most businesses have struggled to keep their businesses open. According to a local businessman, the poor cedi, port tariffs, and high taxation rates under the New Patriotic Party (NPP) government have been among the primary contributing factors causing most businesses to crumble.
The businessman, who asked not to be named, noted that the tax rates imposed on companies have been so high that it has been difficult for them to make a profit. "The taxes are just too high," the businessman said. "It's like the government is sucking the life out of us. We can't even break even, let alone make a profit."
Moreover, the business owner cited the excessive port fees as among the serious issues facing businesses. "The port charges are just too high," the business owner restated. "It's as if they want to discourage us from importing commodities. And even when we try to export, the procedures are so cumbersome and expensive that it's just not worth doing."
The weakened cedi has also badly impacted businesses, the entrepreneur avers. "The cedi is just too weak," added the entrepreneur. "It's like it doesn't even count as a currency anymore. We can't even import products because the exchange rate is so bad. And then when we are trying to export, we cannot even get a good price since the cedi is so weakened."
The feelings of the entrepreneur are echoed by the majority of the other entrepreneurs in Ghana. The Ghana Chamber of Commerce and Industry has also complained regarding the high taxation rates, port fees, and depreciating cedi, stating that these are adversely impacting business and the economy in general.
The NPP administration has been faulted for its economic policies with numerous people accusing the government of insensitivity to the suffering of businesses and the average Ghanaian. The government has, however, been justifying its policies, stating that they are the means through which the economy can be stabilized and growth stimulated.
Despite the promises of solutions from the government, numerous businesses are still failing, with some of them even forced to close down entirely. Among those who told us about such an experience is one entrepreneur. He is but one of several who are struggling to keep their businesses afloat. "We're just struggling to survive," the entrepreneur told us. "But it's becoming increasingly difficult. We want the government to reconsider its policies and see how they're affecting us."
As the government is grappling with the challenges in the economy, it is clear that something needs to be done to assist the businesses and stimulate growth. The entrepreneur's call for the government to re-visit its policies is one that does strike a chord in many in the business community. Time will determine if the government will heed and do anything about the challenges that face businesses in Ghana or not.
References:
Ghana Chamber of Commerce and Industry. (2022). Economic Review.
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