First tax to go should be COVID-19 levy, E-levy, and VAT reviewed – Mark Badu-Aboagye

The CEO of the Ghana National Chamber of Commerce and Industry (GNCCI), has called on the incoming government to prioritise the removal of specific taxes, including the COVID-19 levy and controversial e-levy.

Mark Badu-Aboagye also want the new Mahama administration to address the high rates of VAT.

Speaking on Joy News’ PM Express, Business Edition with George Wiafe, he underscored the burden these taxes place on businesses and their cascading impact on consumers.

“For me, the first tax I expect President-elect John Mahama to take out is the COVID-19 levy. We’ve said it over and over again at the Chamber of Commerce there is no need for this tax anymore,” he stated.

He also criticised the e-levy, describing it as a “brilliant idea” marred by poor implementation.

“Probably, they also have to take [the e-levy] out because it’s been promised. Now, we are going to hold them accountable for the promises they’ve made to the business community because the taxes themselves are killing businesses,” Mr Badu-Aboagye said.

Harsh Business Environment and VAT Concerns

Mr Badu-Aboagye described the current business environment as “extremely harsh,” attributing much of the strain to Ghana’s tax regime.

He highlighted the cumulative effect of the Standard VAT, which is 15%, and additional levies that push the total rate close to 21%.

“These levies translate directly into the cost of production and have a cascading effect on prices and consumers,” he explained.

“The VAT needs to be reviewed.”

He shared an anecdote from a recent meeting with a Chamber member who expressed frustration over the crippling effect of taxes on their business.

“Yesterday, we met one of our members, and he was complaining about taxes. He told us how import duties and several other taxes have made it nearly impossible for his business to thrive,” Mr Badu-Aboagye recounted.

Holding Leaders Accountable

While welcoming the pledges made in political party manifestos to reduce taxes, Mr Badu-Aboagye expressed caution.

“It’s one thing saying it, and it’s another thing doing it. We were here in 2016 and 2017 when the NPP said they were going to remove nuisance taxes. They did scrap about 15 taxes, but they came back in harsher forms,” he stated.

The GNCCI, he said, will hold the incoming government accountable to its promises.

“Businesses need relief, and we’ll ensure these promises are kept,” he added.

Source: myjoyonline.com