Business News

Cost of doing business in Ghana is high compared to neighboring countries – GUTA

Listen to this Article Now
Spread the love

The cost of doing business in Ghana is very high compared to what is happening in neighboring countries, the Public Relations Officer for the Ghana National Union of Traders Association (GUTA), Joseph Padi, has said.

He attributed this to the high taxes that businesses pay.

To that end, he says that the promise by Vice President Dr Mahamudu Bawumia  to remove some taxes including the e-levy is good but that those that can be done now should be removed such as the elevy.

Dr Bawumia had stated categorically that he would abolish the tax on electronic financial transactions, e-levy, if elected President of Ghana. The controversial tax was introduced in 2022, and prior to the introduction, Vice President Bawumia had declared his opposition to levies on electronic financial transactions in an interview.

Delivering his first major address to the nation after his election as NPP flagbearer, during which he gave broad policy outlines of a Bawumia Presidency, Dr. Bawumia minced no words in declaring his opposition to taxes on electronic financial transactions, declaring that he would abolish e-levy as President.

Dr Bawumia added that his bid for a Digital and Cashless Ghana would be significantly boosted if e-levy is abolished.

“To move towards a cashless economy, however, we have to encourage the population to use electronic channels payment. To accomplish this, there will be no taxes on digital payments under my administration. The e-levy will therefore, be abolished,” he declared at the UPSA auditorium on February 7.

Dr. Bawumia also announced that as part of a new tax regime by his government, he will also abolish the emission tax, tax on betting as well as the proposed 15% VAT on electricity tariffs, if it is in existence by January 2025.

He also announced that his government would introduce what he described as a friendly, flat tax regime for Ghana, which will boost individuals and businesses, particularly small and medium-scale enterprises (SMEs).

“My administration will introduce a very simple, citizen and business-friendly flat tax regime. A flat tax of a percentage of income for individuals and SMEs, which constitute 98% of all businesses in Ghana, with appropriate exemption thresholds set to protect the poor,” Dr. Bawumia indicated.

Asked whether he was impressed by this address while speaking on the Business Focus on TV3 Monday February 12, Mr Padi said “Why not. Per where we have been coming from, this is something we have been calling for all these while, we have been complaining about the cost of doing business, that it is too high compared to our neighboring countries.

When you go to our ports right now we are losing business from Togo, Benin, and Nigeria because you go and clear a container worth about $20,000 and you are paying $10,000 as a form of duty. So we have been complaining about this for years, and so if now the vice president has come out to say he is going to scrap all these it is good.. But the challenge here is that those that can be done now should be done now because businesses are suffocating.. for example, we are talking about Ciovid 19 levy, what stops them from taking it off now?”

Source: 3News