The CEO of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu-Aboagye, has urged the incoming government to prioritise the removal of several taxes, including the COVID-19 levy and the controversial e-levy, as well as a review of the high Value Added Tax (VAT) rates.
Speaking on Joy News’ PM Express with George Wiafe, Badu-Aboagye stressed that these taxes are placing a significant burden on businesses and consumers. “The first tax I expect President-elect John Mahama to remove is the COVID-19 levy. We’ve called for this repeatedly at the Chamber of Commerce,” he said.
He also criticised the e-levy, calling it a “brilliant idea” undermined by poor implementation, and suggested it should be scrapped as promised by the incoming government. “The taxes are killing businesses,” Badu-Aboagye added.
The GNCCI CEO described the current business environment as “extremely harsh,” with tax burdens exacerbating challenges for local enterprises. He pointed to the cumulative effect of VAT, which stands at 15%, along with additional levies, pushing the total tax burden close to 21%. “These taxes translate directly into the cost of production and increase prices for consumers,” he explained.
Badu-Aboagye recounted a recent conversation with a Chamber member, who expressed frustration over how import duties and multiple taxes have made it increasingly difficult to sustain their business.
While acknowledging political party pledges to reduce taxes, Badu-Aboagye cautioned against empty promises, noting that previous tax cuts in 2016 and 2017, when the NPP government vowed to remove nuisance taxes, were later replaced by harsher levies.
“We’ll ensure the incoming government delivers on its promises. Businesses need relief, and we’ll hold them accountable,” he said.
Source:TheDotNews