Stop granting tax exemptions to expatriate businesses, you’re killing us – GUTA to government
Livid members of the Ghana Union Traders Association (GUTA) have continued to reiterate their abhorrence for tax exemptions granted to foreign businesses and entities resident in Ghana.
Mr Joseph Paddy, Spokesperson for GUTA complained bitterly that the exemptions are crippling local businesses and that expatriate business abuses the privileges to the point where the state is losing revenue as well.
“For example, this exemption they have given to expatriates must be reviewed. They are abusing it. Somebody comes in the name of building a hotel and therefore is importing fridges and other appliances for the hotel, but ends up selling them in the market.”
He said one of the factors that make the expatriate more competitive is the fact that back in their countries they can borrow with 3% or less interest from their banks while business owners here get to borrow at 28% or more making the competition, especially on the back of pricing their products very difficult as the expatriate price appear cheaper.
“These are the dynamics in the business so if they see Ghanaian prices going up, it is because if you price yourself out, you will go out of business. No business man or woman wants to price himself or herself out of business.”
He Ghanaian contractors go through a lot due to the relatively high-interest rate making local industries very disadvantaged in terms of competitiveness in their businesses.
“Our production is not competitive. The cost of production is extremely high in this country and the cost of utilities is very expensive. Our manufacturing sector is not even attractive because prices are high due to the high cost of production and as such our local products are not patronized,” he explained.
The situation, according to the spokesperson is dire, to the point that some GUTA members are losing grip of their capital, causing untold suffering on businesses caused by failures of our institutions and the government’s inability to open up.
Mr Paddy said the association has offered solutions but “Some of the solutions are unfortunately bitter pills”.
He said the association’s will hit the streets and protest as it has done in previous times if the situation does not change.
