Panel members of the Joy Business Thought Leadership Forum have advised government not to introduce new taxes in the 2024 Budget.

They argued that businesses are already struggling under the current tax regime, hence introducing new taxes or increasing existing levies will collapse businesses.

They added it is time to also remove nuisance taxes hurting businesses and preventing the private sector from growing.

Making the case, the Chief Executive Officer of the Ghana National Chamber of Commerce and Industry,(GNCCI), Mark Badu-Aboagye warned that businesses will continue to fold up and leave the country if the 2024 Budget scheduled to the delivered on Wednesday, November 15, 2023 does not bring hope to the private sector.

“Some of the taxes that we have now are not necessary. They are nuisance taxes. For example, COVID-19 levy. We must also remove the e-levy. If businesses are collapsing you will end up not getting the revenue anyway”, he said.

According to him, economies all over the world are managing taxes in the current global system to encourage growth and not to unnecessarily burden private enterprises.

Describing Ghana’s tax regime as a disincentive, Mr. Badu-Aboagye lamented that businesses are rather expecting policies that will stimulate growth and not stifle private sector operators.

“We have made our inputs to the Minister of Finance. There are times in the past when we have presented proposals but it has not been taken. This time round, the minister has assured us that our input will be considered”.

He cautioned that it will be in the interest of the nation for the proposals tabled by the GNCCI to be factored in the budget statement.

“It will be a disaster if the proposals are not taken”, he said announcing that the proposals are largely hinged on the growth of the economy.

He emphasised that businesses are not against revenue collection if it will stimulate spending and support the private sector.

“Take for example our current VAT system. The separation that made it a straight levy is not helping businesses. That is the reason why prices have gone up, and when prices go up; consumers cut expenditure. When that happens, business cannot produce”.

On his part, the Dean of the University of Cape Coast Business School, Prof. John Gatsi, said government cannot raise revenue to the detriment of the private sector.

He advised government to deploy fiscal tools to support the business community.

He is of the view that unnecessarily taxing businesses should not be the main solution on the table.

“We cannot raise revenue in a manner that will become disincentive to businesses, and consumption”.

He pointed out for example that government can check its expenditure in some areas to direct them to the productive sector of the economy.

The Panel

The Panel was also made up of the President of the Ghana Union of Traders Association, (GUTA) Joseph Obeng; President of the Association of Ghana Industries, Dr. Humphrey Ayim-Darke, and Senior Lecturer at the University of Ghana Business School, Prof. Agyapomaa Gyeke-Dako.