The Ghana Union of Traders Association (GUTA) has expressed dissatisfaction with the government’s plans to introduce three new taxes, claiming that they will further burden the business community, which is already struggling.
The organization issued a statement in response to reports of three new taxes that are currently being considered by parliament to boost government revenue and revive the country’s ailing economy. The three new taxes in question are the Income Tax (Amendment) Bill, Excise Duty and Excise Tax Stamp (Amendment) Bills, and the Growth and Sustainability Levy Bill.
According to the union, the proposed taxes will have a cascading effect on businesses, particularly small and medium-sized enterprises (SMEs), and will hamper their growth and survival. The organization believes that the government’s decision to introduce these taxes is a subtle attempt to re-introduce taxes that were scrapped in 2017.
GUTA called on the government to widen the tax net and review policies on tax exemptions, warehousing, and free zones to generate the necessary revenue rather than burdening its members with taxes.
The organization also stated that doing business now in the country is currently very costly and suffocating, making it difficult to compete with other countries within the African Continental Free Trade Area (AfCFTA) and cross-border trade in the sub-regional bloc. GUTA fears that if the government does not reduce the tax burden on businesses, it will cause the collapse of many businesses, increase poverty, and create insecurity in the country.
The organization has therefore appealed to Members of Parliament to carefully analyze the issue of taxes and take appropriate action to save the country from a crisis.