The Food and Beverages Association of Ghana (FABAG) has firmly rejected the recent proposal from the Association of Ghana Industries (AGI) for new digital tax stamp machines, calling the initiative “misguided” and likely to impose financial strain on businesses already grappling with economic difficulties.
This opposition follows AGI’s suggestion to implement new digital tax stamp machines to enhance tax compliance across industries.
FABAG contends that these machines would place an unnecessary financial burden on companies, many of which are still in recovery from the pandemic’s effects and are facing rising operational costs.
In an interview with GhanaWeb Business, FABAG President John Awuni emphasized that businesses are unable to bear the additional costs associated with the new digital tax stamp machines.
“We urge stakeholders to explore alternative solutions that can enhance revenue collection without increasing the operational costs for local businesses,” Awuni said.
FABAG’s position underscores the wider worries among industry participants about the sustainability of existing tax policies and their effects on economic recovery and growth.
Although the AGI’s suggestion for new digital tax stamp machines seeks to improve revenue collection and tackle tax compliance challenges, FABAG urges policymakers to consult more with industry stakeholders. They emphasize the need for any changes to be economically feasible and supportive of business resilience.