Businesses in Ghana are struggling under the weight of high taxes, according to Mark Badu-Aboagye, CEO of the Ghana Chamber of Commerce and Industry (GNCCI).
In an interview, Badu-Aboagye described the current tax regime as “suffocating,” particularly in light of new taxes introduced under the International Monetary Fund (IMF) program.
“All the excise duties and taxes brought in because of the IMF program are suffocating businesses. Nothing has changed,” Badu-Aboagye lamented.
He added that while the Ghana Revenue Authority (GRA) has become more consultative in its approach, the overall tax structure remains punitive.
“If a presidential candidate promises to remove e-levy, it’s because they know it’s a nuisance tax. It’s not generating the needed revenue, but its negative impact on businesses is huge,” he stated.
Badu-Aboagye criticized the multiplicity and complexity of taxes, pointing out the unique structure of the VAT system in Ghana, which he described as overly convoluted.
“You can’t see this VAT structure anywhere else in the world. It’s a combination of levies that’s confusing to businesses,” he noted.
The CEO further explained that high tax rates lead to tax evasion and avoidance, as businesses find ways to minimise their tax burdens.
“When taxes are high and complex, people will evade or avoid them. Lower taxes would actually lead to more revenue because businesses would find it easier to comply,” he advised.
He called for a complete overhaul of the tax system, arguing that the government’s need for revenue should not come at the expense of businesses.
“We need revenue, but that doesn’t mean we should kill businesses. If we make taxes affordable and simple, compliance will increase, and businesses will thrive,” Badu-Aboagye concluded.
Story By myjoyonline.com
