As the government presents its mid-year budget review on Tuesday, July 13, 2024, the Ghana Hotels Association has called on the government to scrap the 1% COVID-19 levy, which they believe is no longer necessary.
The President of the Association Dr. Arkah Nyamike in an interview with Starr News emphasized that “it’s very, very important to us” that the levy be removed, as it adds to the already high cost of doing business in the country.
The association had previously proposed a consolidation of taxes in the industry, but this was not considered in the current budget. However, they were assured that the engagement with the ministry would continue, and they expect to hear an announcement on the consolidation of taxes in the mid-year review.
Dr. Nyamike stressed that the private sector is crucial to the economy, and any new taxes or extra spending would be detrimental to their operations. He urged the government to stick to the budget and avoid any new taxes.
“The Ghanaian private sector lays a lot of the eggs for the economy, and we should be very careful not to pursue an agenda which will be to the detriment of the private sector,” Dr. Nyamike said.
However, the Ghana Union of Traders Association (GUTA) also weighed in, calling on the Finance Minister to announce measures to stabilize the local currency. The depreciation of the cedi has had a significant impact on their operations and the overall economy.
Dr. Joseph Obeng, President of GUTA, emphasized that a stable local currency is essential for businesses to thrive.
He expressed concern that the current depreciation is making it difficult for businesses to predict and forecast and urged the government to take measures to sustain the stability of the cedi.
“If you look at the current depreciation of the local currency, it is also not helping the growth of businesses. And then you can’t predict, you can’t forecast, and all that,” Dr. Obeng said.
The mid-year budget review is expected to provide some clarity on the government’s plans for the economy, and the private sector is watching with keen interest.
