President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng has expressed distress with Parliament’s approval of the three revenue tax bills.
Parliament last, passed the Income Tax Amendment Bill, Excise Duty Amendment Bill, and Growth and Sustainability Amendment Bill, which collectively, are expected to generate approximately GH¢4 billion per year to supplement domestic revenue.
These revenue measures are part of efforts aimed at securing a $3 billion balance of payment support from the International Monetary Fund (IMF) to salvage the struggling economy.
However, Dr. Obeng has bemoaned the adverse effect of these newly approved taxes on local businesses as they would not be competitive in the West African Sub-Region due to high imposed taxes.
“Businesses are not competitive in the sub region and that is why some of us have to go and buy goods from Togo, so additional taxes will affect our trade. It is going to make us pay a multiplicity of taxes and that is why we called it an obnoxious tax system”, he argued.
Dr. Obeng also bemoaned the high commercial lending rate, which he pointed out, is another big disincentive for businesses in the country.
“Commercial lending rate is at 40 percent, and how do you want businesses to pay this and still have money to pay all these taxes? We are very disappointed at how we are producing our democracy here because it is all about imposition, this approval is going to impede our growth.”
Dr. Obeng also tasked the government to look at other sectors to raise revenue other than overly burdening local businesses with taxes.
“We should curtail the leakages at the Free Zones and warehousing to help raise the needed revenue.”
