The Ghana Traders Association of Ghana (GUTA) has expressed discontent over the passage of the three new taxes by Parliament on Friday, March 31, 2022.
According to the government, the three new taxes will increase revenue to rescue the ailing economy and help also complete processes for the about $3 billion IMF deal.
Parliament passed all three revenue bills: the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, the Ghana Revenue Authority Bill 2022, and the Income Tax Amendment Bill 2022.
However, in response to the three new taxes approved by parliament, Dr. Joseph Obeng, President of the Ghana Traders Association of Ghana (GUTA), stated that the three new bills will have a negative impact on many businesses in the country
He further noted that with the passage of the three killer taxes, some businesses will cease operating soon as a result of financial problems.
The GUTA president suggested that the government should have had a dialogue with the association to evaluate how best they could help improve revenue.
“Let’s evaluate and see where best we can enhance revenue, rather than compound [taxes] on all of us. They [Parliament] should do what is necessary because it’s not going to help us. Already businesses are dying, and the government wants to ensure local productivity. How do you ensure local productivity when we have these killer taxes?” He told Citi News
The Three Taxes
The government says the Excise Duty Amendment Bill, 2022, is expected to rake in GH¢400 million annually. The government hopes to achieve this by imposing a 20% tax on e-smoking, and fruit juices among others.
The Income Tax Amendment Bill, 2022 is expected to rake in GH¢1.2 billion annually.
Growth and Sustainability Amendment Bill, 2022 is also expected to bring in the government’s kitty GH¢2.2 billion annually.
This bill will impose a 5% Levy on profit before tax of the companies and institutions affected.
