The Ghana National Chamber of Commerce and Industry (GNCCI) is calling on the government to consider incorporating tax reliefs in the upcoming mid-year budget review.
This measure is believed to provide much-needed relief for businesses and contribute to their recovery.
According to the Chamber, the austerity measures introduced in the 2023 budget as part of the IMF bailout program have had a significant negative impact on local businesses. With the current improvements in macroeconomic conditions, the Chamber argues that the government should remove some of these burdensome taxes.
Clement Osei-Amoako, the President of GNCCI, emphasized the importance of the mid-year budget review in demonstrating the government’s commitment to alleviating the challenges faced by businesses. As the Minister of Finance prepares to present the review, the Chamber hopes to see measures that will ease the suffering of businesses and support their growth.
“Government sought assistance from the IMF, and through that implemented a series of reforms. These reforms included tightening monetary policy, raising taxes and implementing automatic adjustments to utility tariffs among others. While these actions were intended to rectify fiscal imbalances and promote economic stability, they have resulted in higher operational costs for businesses operating in the country. Regrettably, numerous local businesses are collapsing while others are relocating in response to these challenges.
“It is crucial that government swiftly reconsiders its tax policies and streamlines the tax structure to ensure fairness, reasonableness and support for business development without any delay,” he fumed.
GNCCI tax
He spoke at an event dubbed ‘Chamber Bazaar’ in Accra, and lamented that tax measures such as the Excise Duty, Growth and Sustainability Levy, as well as high utility tariffs, currency depreciation and high fuel prices are having a negative impact on businesses.
While calling for some tax policies such as the COVID-19 Levy, Growth and Sustainability Levy among others to be relaxed or revised downward, Mr. Osei-Amoako said government must also consider innovative ways to widen the tax net.
The GNCCI is of the firm belief that by creating a favourable business environment, government can unlock the private sector’s true potential and drive resilient economic growth, leading to a prosperous Ghana.
Expensive ports thwarting growth prospects
Another area the Chamber believes needs a rethink is the country’s ports. It bemoaned the huge fees and charges producers pay when importing raw materials for onward production.
It said the current high import duties on raw materials and machinery meant for local production is not the way if government is serious about promoting industrialisation and supporting domestic businesses to be competitive within the African Continental Free Trade Area (AfCFTA).
Chamber Bazaar
The Chamber’s president made these strong requests on the sidelines of the three-day Chamber Bazaar launch in Accra, under the theme ‘Harnessing business potentials through trade fairs and exhibitions’. The Bazaar aims to provide a platform for businesses to showcase their products, services and innovative ideas to a diverse audience.
“The ‘Chamber Bazaar’ is yet another initiative by the GNCCI to support local businesses and contribute to overall economic growth of the country. The GNCCI remains fully committed to fulfilling its legislative mandate of promoting and protecting the commercial and industrial interests of our country,” he said.
Vice President of the Liberia National Chamber of Commerce, Natty Davis – a guest at the launch, expressed admiration for the GNCCI and its continuous efforts to introduce innovative initiatives that promote business growth in the country. He commended their commitment to supporting the business community.
Davis also mentioned that the Liberian Chamber is actively engaging with its counterparts in Ghana to foster collaboration, create synergies, and leverage each other’s competitive advantages. The goal is to enhance intra-African trade and strengthen economic ties between the two countries.
The exhibition featured various brands, including Extra Fashion, Salem Upholstery, African Diamond Cable Co. Ltd., Amalena Children’s Haven, T.T. Brothers Ltd., and others, showcasing their products and services.