You’re killing many businesses with so many taxes – GUTA to government

You’re killing many businesses with so many taxes – GUTA to government

Mr Charles Gyan, Vice president of the Ghana Union of Traders Association has pointed out that one of the major drivers of the rising cost of products in the country is the high tax burden on businesses.

He explained that many businesses in order to stay in operation are forced to transfer taxes onto the cost of their products.

Mr Gyan further indicated that while the situation makes products and services more expensive for many to afford, there is very little the businesses could do about the situation.

He argued that the Ghana Revenue Authority (GRA) can help address the issue of the rising cost of products and services by expanding the tax net in order to have the tax burden reduced on the few companies who he said are being burdened all the time with new taxes.

“Government should look at the way it tries to raise money by taking taxes. Few people have been targeted. GRA as an institution must back up. I think they are very lazy. They are not helping matters because if you look at the number of people in the informal sector who are not contributing anything, it is a pity,” he said.

He pointed out that increasing prices to make up for new taxes imposed on businesses is not sustainable and, as such, the businesses may have to lay off workers if it persists in order to continue operating.

“If the few businesses are always being burdened [with taxes] it will get to a point where we are going to lose businesses and unemployment will go up. Masons, carpenters and all of such persons don’t pay anything [they must be roped in],” he said.

Many Ghanaians continue to lament the rising cost of living in the country.

With recent transport fares going up and indications of utility prices also rising soon and no increase in wages and salaries, the future appears to be bleak.

GUTA argued that among the major drivers of the rising cost of products and services and the high taxes imposed on their businesses, the depreciation of the cedi, and the high cost of freight, among others.

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