President of the Ghana Union of Traders Association (GUTA), Dr Joseph Kweku Obeng, has expressed his displeasure about the three new taxes before parliament for consideration.
The three new taxes – Income Tax (Amendment) Bill, Excise Duty, and Excise Tax Stamp (Amendment) Bills as well as the Growth and Sustainability Levy Bill – are meant to help government acquire more revenue.
According to him, the re-introduction of such nuisance and obnoxious taxes which were scrapped in 2017 will put more burden on the business community which is already in distress.
“In 2017, when this government resumed power, it realized that businesses are suffering due to excessive taxes. So it scrapped the nuisance taxes.”
“This means that government is aware that too many taxes affect businesses. After scrapping the numerous nuisance taxes, they’re now reintroducing it at higher rates.
“If businesses thrive government benefits, so why is it that after businesses have suffered as a result of Covid and Russia-Ukraine, all these taxes are being reintroduced? That increases our burden and we can’t take it any longer,” he lamented.
He explained that the new taxes will affect government’s effort to enhance local productivity.
“Government has shared its intent to enhance local productivity and these new taxes would not make that possible.”
“These new taxes will suppress local productivity,” he added.
Dr Obeng suggested that government widens the tax net and review policies on tax exemptions, warehousing, and free zones in other to raise the needed revenue rather than burdening its members with taxes.
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“We plead with government to hold on with that because as it says the Covid and Russia-Ukraine war has affected the economy and we traders have our own struggles.
“We are saying that government can get revenue through other means.
“Only a few of us pay taxes and these new taxes will overburden us. According to GRA, effectively Ghanaians who can pay taxes are 13 million. But those who pay these taxes now, are not even up to 4 million,” he said on Accra-based Neat FM.