The Ghana National Chamber of Commerce (GNCCI) will present a petition to President Nana Addo Dankwa Akufo-Addo today (April 4, 2023) about the adoption of the three new levies by the government.
According to Mark Badu Aboagye, the chief executive officer of GNCCI, firms are expected to lay off more workers as a result of the government's constant taxation.
The Chamber is consequently pleading with the President to step in, warning that "companies are going to suffer more and enterprises will eventually have to lay off employees."
We're going to write the President a letter. There was no consultation. He remarked, "I believe he is a listening President and will listen to us.
The Growth and Sustainability Levy Bill, the Excise Duty Modification Bill for 2022, and other bills were enacted by Parliament on Friday, March 31. The financial legislation aim to mobilise around 4 billion Ghana Cedis in domestic income each year.
On Monday (April 3, 2023), Mr. Aboagye stated the additional taxes will increase the cost of doing business in Ghana because there are currently enough levies that are forcing enterprises to close.
"I believe that many firms are already struggling. There are several taxes in this nation. Only Ghana is still collecting COVID-19 taxes from its citizens. Already, the cost of doing business is considerable, he claimed.
"The policy rate has recently been raised to 29.5%," he said, "which translates into a loan rate of roughly 45%. The cost of power and water has increased. These are all things. All things considered, the business environment is quite challenging, yet enterprises are still growing. Then we create more levies, which are harmful to companies and unproductive. Companies are about to fail.
He emphasised that the increased tariffs would destroy enterprises because so many industries were losing money.
"The majority of them are losing money. You introduce a tax that will deduct a portion of the little earnings they will generate, which they will then reinvest in their enterprises. What we are doing, he complained, is killing off enterprises.
"In some nations, the private sector is being strengthened via the use of both fiscal and monetary policy. We are destroying businesses with our budgetary policies—taxes. The outcome won't be favourable to us. Nothing matters to us because we need IMF funding. We are not being considerate of people who will pay taxes, companies, or even consumers, according to Aboagye.
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