GUTA Warns Against Tax Fatigue

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Leader of Ghana Union Traders Association (GUTA), Dr. Joseph Obeng, has demonstrated that if the general population doesn’t feel the effect of the new monetary commitments presented by the government, they may create tax weariness.

“At the point when they see that there is no incentive for cash for these taxes that they pay, at that point it turns out to be hard for individuals to deliberately conform to the tax assortments. It’s remarkable the amount we gather as far as these taxes, however, we ought to have the option to show the amount we’ve had the option to do with taxes. Is it an incentive for cash?

“Individuals have begun scrutinizing this. So it isn’t so much that we’ve had the option to gather such a great amount in a year, and it had the option to do just excessively little. It implies that our cash has not been utilized properly and individuals won’t have the affection to pay taxes in any case individuals are exceptionally anxious to do this as their public obligation,” he expressed.

These new taxes are because of the inconvenience of an Energy Sector Recovery Levy of GH¢ 20 pesewas for each liter of petroleum/diesel and 18 pesewas for every kg on Liquefied Petroleum Gas (LPG).

What’s more, the inconvenience of a Sanitation and Pollution Levy of GH¢10 pesewas per liter of petroleum and diesel individually will add to the new tax.

Additionally, the COVID-19 Health Recovery Levy Act, 2021 (Act 1068) and the Energy Sector Levy (Amendment) Act, 2021 (Act 1064) are essential for the taxes presented.

The COVID-19 Health Recovery Levy Act “forces a one percent demand on the inventory of labor and products made in the country, other than absolved merchandise or benefits and the import of labor and products, other than excluded imports.”

The duty likewise applies to the inventory of merchandise subject to the VAT Flat Rate however isn’t permissible as an information tax allowance.

These taxes produced results on May 1, 2021 after the Ghana Revenue Authority’s declaration to start execution.

GUTA has encouraged the government to guarantee the populace get an incentive for cash as it carries out the new taxes presented in the 2021 financial plan.