Ghana has the Highest Number of Taxes on Goods – GUTA President
The President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng has raised concerns about Ghana’s leading position in terms of the number of taxes imposed on goods compared to other West African countries.
Speaking on Nkwantannanso on May 31, he expressed disappointment that the President has reintroduced taxes that were promised to be abolished during his presidential campaign.
“The problem businesses have is the reintroduction of the nuisance taxes the President promised to scrap, and he has also introduced new taxes. This shows how serious our economic situation is.”
He further highlighted the negative consequences of the high tax burden, stating, “Because of the high number of taxes, people are finding means to dodge payment, which means low compliance. When taxes are few and affordable, people will be willing to pay.”
Dr Obeng urged the government to focus on widening the tax net and increasing taxpayer participation rather than introducing new taxes.
He emphasised, “Few people pay tax in Ghana, and these people are now burdened to pay the tax. The government should focus on getting more people to pay tax.”
The GUTA President also expressed concern about the impact of high interest rates on business loans and the unstable exchange rate.
He expressed hope that with the current International Monetary Fund (IMF) deal, things will improve.
“We need favourable conditions for businesses to thrive. The high interest rates and exchange rate fluctuations pose significant challenges,” he stated.
He further called on the government to develop sound policies that work in conjunction with the IMF deal, adding, “If the government puts in place new measures, there will be no need to go to the IMF in the future. We must find sustainable solutions to our economic challenges.”
The issue of Ghana’s high tax burden and its impact on businesses continues to be a matter of concern for GUTA, urging the government to address these issues and create a conducive environment for businesses to grow and thrive.
