The Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu-Aboagye, has urged the incoming government to prioritize tax reforms, specifically the removal of the COVID-19 levy and the controversial electronic transactions levy (E-levy). He also called for a critical review of the Value Added Tax (VAT) system to alleviate the financial burden on businesses and consumers.
Mr. Badu-Aboagye highlighted the pressing need for tax policy changes, emphasizing how these levies have stifled businesses and driven up costs for consumers.
COVID-19 Levy: A Redundant Burden
“For me, the first tax I expect President-elect John Mahama to eliminate is the COVID-19 levy,” he asserted. “At the Chamber of Commerce, we’ve reiterated that there is no justification for this tax anymore. It has outlived its purpose and continues to weigh heavily on businesses.”
E-Levy: A Good Idea Gone Wrong
Mr. Badu-Aboagye also criticized the E-levy, describing it as a “brilliant idea” that failed due to poor implementation. He urged the new administration to fulfill its promise of scrapping the tax.
“Businesses are dying under the weight of these taxes. If the Mahama administration has promised to remove the E-levy, then we expect them to deliver. They will be held accountable for their commitments to the business community,” he warned.
Harsh Business Environment and VAT Challenges
Describing Ghana’s current business environment as “extremely harsh,” Mr. Badu-Aboagye attributed much of the economic strain to a rigid and burdensome tax regime. He underscored the impact of VAT, which, when combined with additional levies, pushes the effective rate close to 21%.
“These levies significantly increase production costs, which are then passed down to consumers. The VAT system urgently needs a comprehensive review,” he stated.
Sharing a personal anecdote, he revealed the frustrations of a Chamber member who lamented the crippling effects of taxes on their business.
“Just yesterday, a member told us how high import duties and other taxes have made it almost impossible for their business to survive. This is the harsh reality many businesses face today,” Mr. Badu-Aboagye noted.
Demanding Accountability
While welcoming promises from political parties to reduce taxes, Mr. Badu-Aboagye expressed skepticism, referencing past experiences where tax relief pledges were not fully honored.
“It’s easy to make promises during campaigns, but implementing them is the real challenge. We recall in 2016 and 2017, the NPP government pledged to eliminate nuisance taxes, and while they scrapped about 15 taxes, others were introduced in harsher forms,” he remarked.
The GNCCI, he said, is committed to holding the incoming government accountable.
“Businesses are in desperate need of relief, and we will ensure that these promises are not just empty words. The future of Ghana’s business community depends on it,” he concluded.
A Call for Immediate Action
Mr. Badu-Aboagye’s appeal serves as a rallying cry for the incoming Mahama administration to prioritize tax reforms as a cornerstone of its economic agenda. With businesses struggling under the weight of Ghana’s tax regime, the GNCCI insists that immediate action is essential to foster growth, create jobs, and stabilize the economy.
Story by: Mercy Addai Turkson
