Some business leaders sampled by KPMG ahead of the 2022 Budget want government to pay critical attention to the depreciation of the cedi, high business operational costs, high borrowing costs, high rate of taxes, increased government borrowing, among others.

They also indicated that the digital infrastructure and services and other factors such as cost of funding, availability of forex, infrastructure and stability of the cedi played significant roles on their business growth and profitability and as such need critical attention.

On complexity of tax laws, most respondents indicated that local tax laws are complex.

Also, most respondents indicated that their businesses are at the resilience stage of responding to the Covid-19 crisis, when it came to the stage of business recovery.

Regarding fiscal measures, majority of respondents indicated that fiscal measures introduced both prior to Covid-19 and after Covid-19 had minimal impacts on their businesses.

They also indicated that the three major fiscal measures that should be prioritised by government in the 2022 budget are reducing the 5% Financial Sector Recovery Levy, restoring NHIL/ GETFund input claim, and restoring the use of turnover thresholds for qualification to apply 3% VAT.

On global megatrends impacting economies, the KPMG Survey said the public debt is expected to operate as a significant constraint on fiscal and policy options through to 2030 and beyond, and as such “governments’ ability to bring debt under control and find new ways of delivering public services will affect their capacity to respond to major social, economic and environmental challenges.”

Also, “the interconnected global economy will see a continued increase in the levels of international trade and capital flows, but unless international conventions can be strengthened, progress and optimum economic benefits may not be realized.”

Initiatives by government that will create a business sustainable environment

The findings suggested initiatives that will facilitate trade between other ECOWAS countries, the implementation of a strategy to tax citizens as well as minimization of cost of funding and credits. Others are the improvement in infrastructure network, the enhancement of tax transparency, innovation and accountability and the minimization of corporate tax rates and the creation of more incentives for companies to employ fresh graduates.

The survey sample 64 businesses leaders from the Ghanaian business community across 23 sectors for their perceptions of the business environment and the fiscal regimes that affect their operations.